New Development Bank’s Ratsoma on capital raising in Africa

The New Development Bank, a financial institution focused on investing in infrastructure across member countries, has been making significant strides in the past seven years. With over $35 billion in financing approved for various infrastructure projects, the bank is now on a path to expand beyond its BRICS founding members. Recent additions like Egypt and potential new members from Africa are poised to enhance the bank's reach and impact. Monale Ratsoma, the Director General of the New Development Bank, highlighted the importance of these collaborative connections at events like the AfDB Meetings where the bank can showcase its success stories and unique approach to financing. Ratsoma emphasized the crucial link between infrastructure and trade, stating that no trade can happen without sufficient infrastructure. The New Development Bank has been involved in game-changing projects such as the Lesotho Highlands Water Project in South Africa, demonstrating the mutual benefits that large infrastructure investments can bring. As the institution looks to bridge the infrastructure gap in Africa, estimated to be in the range of $50 billion to $150 billion per year, innovation and new thinking are key to addressing these challenges. One of the key issues discussed during the interview was capital raising, a significant challenge for many African countries. Ratsoma emphasized the need for new approaches to capital leveraging, including exploring traditional instruments like special drawing rights and foreign exchange reserves. By harnessing these resources effectively, MDBs can unlock greater financial capacity to fund infrastructure projects. Additionally, engaging the private sector through public-private partnerships and other innovative financing models is crucial to de-risking projects and attracting external investments. In conclusion, the New Development Bank is poised to revolutionize infrastructure financing in Africa through its fresh approach and commitment to addressing legacy challenges. By fostering collaboration, exploring new financing mechanisms, and engaging the private sector, the bank aims to play a pivotal role in enabling trade and driving economic growth across the continent. As Ratsoma aptly summarized, 'We are new, and we are new in the way that we do business.'