The block incorporating Brazil, Russia, India, China and South Africa established the BRICS Development Bank in the just ended Sixth Annual BRICS Summit.
South Africa’s minister of International Relations and Cooperation, Maite Nkoana-Mashabane noted that the newly established bank would help with cash injections for the much required infrastructural projects in the region.
The headquarters of the bloc’s new bank will be in China, but South Africa will host the institution’s main centre for its affairs on the continent.
“It was South Africa that mooted the idea of having the BRICS Development Bank, so that must make South Africans very happy,” Mashabane posited.
Integration of the economies of the continent will require huge loan facilities, a role expected to be played by the new BRICS bank.
Mashabane noted that there were now available resources to help enhance the infrastructure built projects in Africa.
The BRICS initial capital injection will be 100 billion US dollars with a reserve currency pool worth over another 100 billion US dollars.
Commenting on the mutual beneficial relationship between BRICS nations and the business sector, Glenn Ho, head of local China Practice KPMG South Africa said countries in the block were poised to benefit.
“If four or five countries can work efficiently and effectively, economies in all those countries will improve and business will better for everyone,” Ho told CNBC Africa.
“All five countries in the BRICS bloc are important actors in the global economy which will make the world economy to benefit from this partnership,” he added.
(WATCH VIDEO: Importance of BRICS summit for KPMG)
He also explained that the establishment of the BRICS Development Council, BRICS Development Bank and the reserve currency were key to the future development of the five countries.
Ho noted that the establishment of the BRICS Development Council has given business a forum to raise issues with the minister which he can raise with his counterparts with regards to tariffs and other issues currently prohibiting the growth of South African businesses.