Source: Zim on the verge of joining BRICS – herald
Debra Matabvu
Senior Reporter
ZIMBABWE expects to be admitted as a full member of the New Development Bank (NDB), commonly known as the BRICS Bank, within the next six months following the commencement of formal negotiations between the two.
The admission process comprises three phases, with the Government focused on the first stage, which involves finalising negotiations on the terms of membership.
The second phase will involve negotiations on Zimbabwe’s shareholding in the financial institution, including discussions on the initial capital contribution.
Thereafter, the NDB Board of Directors is expected to endorse the agreement confirming the country’s admission as a full member.
The agreement will also be tabled before the Parliament of Zimbabwe as part of the endorsement process required for membership.
Zimbabwe’s admission into the New Development Bank is expected to unlock critical development financing for the country.
Since the turn of the millennium, Zimbabwe has struggled to access concessional financing from international financial institutions such as the International Monetary Fund (IMF) and the World Bank due to illegal sanctions imposed by Western countries, as well as outstanding debt and arrears owed to the institutions.
Currently, Harare is seeking at least US$2.5 billion in bridging finance to clear arrears owed to the World Bank, the African Development Bank (AfDB), and the European Investment Bank (EIB).
In an interview, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said Government was now working to finalise the negotiations and begin the next phases.
“We are pleased that regarding our application to join the BRICS Bank, or the New Development Bank, we have made good progress,” Professor Ncube said.
“At least we have passed through the first step, which is to be accepted as a potential member, who then should initiate negotiations. So the next step is actually the negotiations around the membership itself, what it entails, number two, the shareholding, and how we should pay, how much we should pay. All of that is the next step.
“Once we are done with that second step, we then go on to the third step, which is then, that the agreement is then endorsed by the board and then what are called the governors of the bank, which is the ministers of finance who represent those countries. That will be the final step.”
Professor Ncube also said both parties expect all the processes to take six months.
Since we are acceding to an international organisation, we also have to take this through our Parliament,” Professor Ncube added.
“So the two critical steps are just to finalise the negotiations, and then approval by the governors. That is critical. We are saying that over the next six months, we have allocated six months for that process to happen.”
Zimbabwe’s prospective membership of the BRICS Bank is expected to unlock long-term financing for strategic national projects under the National Development Strategy 2 (NDS2) and Vision 2030.
The Government has, over the years, relied on public-private partnerships (PPPs) to advance its economic reform agenda, which also includes infrastructure development projects such as road rehabilitation and dam construction.
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