New Development Bank to officially open regional office in Joburg

The New Development Bank (NDB) is set to make history with the official opening of its African Regional Centre office in Johannesburg. The centre will serve as a platform to showcase the NDB's services, emphasizing the bank's crucial role in infrastructure and sustainable development across emerging and developing countries. The President of the New Development Bank, KV Kamath, sat down with CNBC Africa to discuss the bank's mandate, vision, and partnerships. Kamath, with a wealth of experience from India, highlighted the unique mission of the NDB as the first development bank from the Global South. Kamath outlined the mandate provided by the BRICS leaders to establish a development bank that focuses on green, sustainable, and cost-effective projects. The NDB aims to set itself apart by lending in local currencies to reduce risks associated with hard currency borrowing. Kamath expressed confidence in the growth momentum of the BRICS countries, noting that the majority of global incremental growth originates from these five nations. When questioned about the macroeconomic environments in various member countries, Kamath remained optimistic, stating that challenges faced by individual nations are transitional. He emphasized the NDB's goal to fund projects aligned with their partners' priorities and the bank's core focus areas. Kamath pointed out that even China, a borrowing member, is using NDB funds to finance environmental improvement projects. Discussing funding sources, Kamath highlighted the NDB's capital base, which is set to increase in the coming months. He revealed plans for green bonds, including a masala bond issue in India and a potential rand bond in South Africa. Kamath underlined the importance of local currency financing to mitigate exchange rate risks and attract diverse investments from pension funds and other institutional investors. On collaboration with other development finance institutions, Kamath acknowledged the wealth of experience these institutions bring and emphasized a mix-and-match approach to learning and innovating. He shared insights into the NDB's plans for project implementation, particularly in Africa, where the bank is looking to build a project pipeline adapted to the continent's unique dynamics. As the NDB prepares for membership expansion, Kamath refrained from disclosing specific markets but assured that the bank's mandate is open to all United Nations member countries. The African Regional Centre's opening in Johannesburg marks a pivotal moment for the NDB, with a focus on learning, listening, and laying the groundwork for future projects and partnerships. In conclusion, Kamath expressed confidence in South Africa's ability to implement the NDB's strategies effectively, citing historical development precedents. The NDB's vision for sustainable and inclusive development aligns with the global shift towards green financing and local currency funding. With a commitment to innovative projects and partnerships, the NDB under President Kamath's leadership is poised to make a significant impact on infrastructure development and sustainable growth across the Global South.