New Development Bank expands to 11 members, raises $16.1bln in 2024

Zawya

11 hours ago

The New Development Bank (NDB) has approved Colombia and Uzbekistan as new members, its president Dilma Rousseff said, as the lender focuses on expanding its membership and increasing financing in local currencies for sustainable development in the Global South.
Speaking at the conclusion of the BRICS-led bank's Annual Meeting in Rio de Janeiro, Rousseff confirmed the decision by the Board of Governors, which is composed of the finance ministers of the BRICS countries. The additions bring the bank's total membership to 11 countries, which also includes its founders Brazil, Russia, India, China, and South Africa, as well as the United Arab Emirates, Bangladesh, Egypt, and Algeria.
Rousseff said that other countries are under review for membership but did not disclose their names, citing internal confidentiality guidelines.
'Our expansion will follow strategic criteria, always with the goal of strengthening our representativeness within the Global South,' she explained.
Rousseff also outlined the bank's governance model, drawing a contrast with institutions like the IMF and the World Bank.
'Our Bank was established by the Global South for the Global South, with a governance structure based on substantive equality among members,' she emphasized, noting that the model does not allow for unilateral veto power and rejects political or economic conditionalities on its loans. 'Our model is demand-driven. It is the member countries that define their development priorities, and we assess projects based on technical—not political—criteria.'
The NDB president addressed a challenging 15-month period when the bank was unable to raise funds in international markets. Since taking leadership in March 2023, she said she has led a campaign to resume bond issuances, successfully raising $16.1bn in 2024 at competitive rates.
'Today we have strong credit ratings, including a AAA grade from the Japanese agency JCR, and we are expanding into new markets, such as yen-denominated instruments and the Middle East,' Rousseff said.
The bank's approved project portfolio has now reached $40bn across 122 initiatives, with $22.4 billion already disbursed. Its investment strategy focuses on four pillars: logistics infrastructure, digital transformation, social infrastructure, and energy transition.
Rousseff highlighted the bank's push to increase financing in local currencies to shield member countries from the risks ofrelying on the U.S. dollar.
'Any business or government that borrows in foreign currency becomes subject to decisions made by the Federal Reserve or other central banks in developed nations,' she cautioned.
Technological innovation and cooperation among developing nations is another key theme, Rousseff said, positioning the NDB as a facilitator of knowledge-sharing. She cited a smart hospital project in São Paulo that incorporates Chinese expertise as an example of South-South cooperation.
'Storing wind and sunlight was once mocked as a fantasy, but today it is one of the most strategic areas in the global energy sector,' Rousseff noted.
Asked about 'de-dollarization,' Rousseff said she did not see evidence of an imminent decline in the dollar's status but that the rise of local currency trade initiatives was an undeniable and positive development.
Looking ahead, Rousseff said the bank's priorities include further strategic membership expansion, mobilising private capital, scaling up partnerships with research institutions, and continuing to increase local-currency operations.
Founded in 2014 by BRICS countries as an alternative to traditional financial models, the Shanghai-headquartered NDB operates with a mandate of sustainable development and respect for national sovereignty.