‘Joining BRICS Bank widens country’s sources of credit’ Professor Mthuli Ncube

Mukudzei Chingwere recently in JOHANNESBURG, South Africa

Zimbabwe’s application to join the BRICS Bank is premised on the country’s need to widen its development finance streams and acceptance will go a long way in stepping up the country’s economic development agenda, Finance and Economic Development Minister Professor Mthuli Ncube has said.

Prof Ncube said this in an interview on the sidelines of the 15th BRICS summit where President Mnangagwa was represented by Vice President Dr Constantino Chiwenga. Zimbabwe is already a member to the International Monetary Fund (IMF), the World Bank and the Afreximbank among other development financiers.

However, it has increasingly been overlooked for developmental funding by the IMF and the World Bank owing to political differences with the United States and a few Western countries which wield heavy influence over the multi-lateral lending agencies.

The differences have resultantly seen the US and some of its allies imposing illegal economic sanctions on Zimbabwe to sabotage the local economy and promote regime change. President Mnangagwa’s Government has successfully implemented several sanctions busting measures that have seen the country registering rapid economic growth and gravitating towards the attainment of an empowered upper-middle income economy by 2030. 

Against this background, it has been observed that the economy would have been better off had it not been for the effects of the illegal sanctions.

“Joining the BRICS Bank is critically important for Zimbabwe, so Zimbabwe can then diversify its sources of credit, its sources of development finance, its sources of credit finance in order to develop the country,” said Professor Ncube.

“At the moment, Zimbabwe is a member of the African Development Bank, the Afreximbank for example and then also GDB Bank, the World Bank and then the IMF. So, if you can add the New Development Bank which is the BRICS Bank that would be great. It will further diversify our sources of finance.

“Hopefully, beyond joining the bank we can then move on as a country and join the entire BRICS which again augers well for Zimbabwe and positioning among the nations that are growing and growing pretty fast.

“They account easily for 25 percent of global GDP, so it is wonderful that Zimbabwe can be a member of that club in addition to other memberships that it currently holds.” 

The BRICS Bank or New Development Bank is increasingly growing in stature. It mainly focuses on financing projects and innovating tailored solutions to help build a more inclusive, resilient and sustainable future in the world.

The Bank has an initial authorized capital of US$100 Billion and an initial subscribed capital of US$50 billion. The bank is also looking at ramping up local currency usage among its members, a move calculated at promoting global economic participation away from the dominance of the Global North.

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