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Time of India
4 days ago
- Business
- Time of India
Cross-border platforms and development finance to power BRICS+ growth: EY Report
As BRICS+ economies deepen collaboration to reshape the global financial system, three key institutional initiatives: the cross-border payments platform , the New Development Bank (NDB), and the BRICS Contingent Reserve Arrangement (CRA) are gaining strategic momentum, according to the EY Economy Watch July 2025 edition. These efforts come at a time when global trade is navigating uncertainty from geopolitical developments, evolving supply chains, and shifting trade dynamics - encouraging emerging economies to strengthen resilience and diversify their financial and trade frameworks. Explore courses from Top Institutes in Please select course: Select a Course Category Artificial Intelligence Digital Marketing Data Analytics Others PGDM Public Policy MBA Design Thinking Project Management Cybersecurity others CXO Finance Technology Healthcare Data Science healthcare Product Management Management Leadership Degree Data Science Operations Management MCA Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details As of 2024, BRICS+ countries accounted for 42.5 per cent of global GDP (in purchasing power parity terms), 54.0 per cent of the global population, and 27.3 per cent of global merchandise exports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo These milestones reflect not only the BRICS+ growing economic power but also a deepening commitment to reforming international financial and trade systems. Given current trends, the EY report stated that it expects that the BRICS+ group would account for more than 50 per cent of global GDP in PPP terms by 2030, both due to growth prospects the current members and partners and induction of additional countries into the group. Live Events DK Srivastava, Chief Policy Advisor, EY India, said, "The BRICS+ institutional initiatives are gaining traction at a time when the global economic order is undergoing realignment. These mechanisms especially the payments platform and the CRA are designed to improve financial autonomy and macroeconomic stability among BRICS+ participating nations. The New Development Bank, with its potential to deliver scale and speed in development financing, is equally critical for infrastructure-led growth." The BRICS+ payments platform, built on blockchain technology, is designed to enable cross-border transactions in local currencies. This system is expected to enhance flexibility in currency use for trade among member nations. The EY report notes that this development could foster greater financial stability, facilitate smoother trade flows, and strengthen economic resilience across participating countries. The NDB is also evolving as a major financing institution for emerging markets, particularly within the BRICS+ bloc. With a focus on competitive interest rates and development-oriented lending, the bank is well-positioned to support infrastructure growth and long-term investment flows across member nations. Another pillar of this new financial framework is the BRICS Contingent Reserve Arrangement, which offers a safety net to participating countries through currency swaps during balance of payments challenges. The CRA enhances collective financial security and provides an added layer of support to help manage external economic pressures. Once these initiatives gain momentum, they may go a long way in fostering a multilateral system of global trade, global investment and global financial flows that are comparatively lower in cost and offer complementary options to existing global arrangements. The report highlights the BRICS+ group's focus on facilitating trade in local currencies and expanding access to development financing, supporting efforts toward a more inclusive and balanced global financial architecture. While the group is not seeking to replace the US dollar's role in the global economy, these initiatives aim to broaden financial options and promote a more balanced international monetary system. As the BRICS+ grouping expands its reach, these financial innovations are expected to strengthen intra-group economic ties and support more inclusive global development. With sustained efforts to operationalise and expand these platforms, BRICS+ could emerge as a key driver of more inclusive, resilient, and sovereign-oriented global economic growth.
Business Insider
4 days ago
- Business
- Business Insider
South Africa secures R7 billion lifeline from BRICS Bank for road infrastructure
South Africa is set to receive a R7 billion (about $398 million) loan from the New Development Bank (NDB), also known as the BRICS Bank, in a move aimed at revitalising the country's aging road infrastructure. South Africa will receive a R7 billion loan from the New Development Bank to upgrade road infrastructure. The New Development Bank, established by BRICS nations, serves as an alternative funding source for the Global South. The loan will support critical transportation routes, improve connectivity, and enhance road safety. Established by the BRICS bloc—Brazil, Russia, India, China, and South Africa—the NDB is rapidly emerging as a key alternative source of funding for major infrastructure projects across the Global South. Its growing presence comes as African nations increasingly shift away from traditional Western financiers amid a changing global economic landscape. The loan, requested by the South African National Roads Agency (SANRAL), will be directed toward upgrading vital transportation routes, improving connectivity, reducing congestion, and enhancing safety along critical economic corridors. The agency noted that the investment forms part of a broader effort to meet rising transport demands after years of underinvestment. Speaking during the loan agreement signing in Johannesburg on Tuesday, SANRAL CEO Reginald Demana said final approval hinges on a legal opinion from the state law adviser, expected within two weeks. Officials say the deal is close to being finalised and will inject much-needed capital into South Africa's construction and transport sectors, both seen as essential to economic recovery and long-term growth. South Africa's road agency, SANRAL, will use a new loan to upgrade four major freeways at a cost of 12.7 billion rand and fund other projects. In 2019, SANRAL failed to secure a government-backed loan from the New Development Bank due to concerns over debt from Gauteng's now-defunct tolling system. With that issue resolved, the state has approved a 16.5 billion-rand debt cap. ' We still need to go to the market to raise additional funding, ' CEO Reginald Demana said, pointing to domestic bond investors, banks, and institutions. ' The NDB might also be interested to look at more rand funding, ' he added. The loan is also expected to support job creation and stimulate local economies by enabling smoother movement of goods and people. SANRAL has said it is committed to ensuring that the implementation of projects funded by the loan will adhere to high standards of transparency and sustainability.
The South African
6 days ago
- Business
- The South African
South Africans doubt R7 billion BRICS loan will be used to fix roads
On Wednesday it was reported that the South African National Roads Agency (Sanral) is set to access a R7 billion loan from the New Development Bank (NDB) to fund major upgrades to the country's transportation infrastructure. Sanral CEO Reginald Demana confirmed that final approval is pending legal and regulatory processes, including a legal opinion from the state law adviser and foreign exchange clearance from the South African Reserve Bank. The funding has been earmarked for a R12.7 billion upgrade of four major freeways, alongside additional national road projects. The deal marks a significant boost for infrastructure development following the government's recent resolution of issues surrounding Sanral's controversial e-tolling system. However, South Africans are sceptical as to whether the money would in fact be used to improve roads and highways around the country. Below, just a handful of the comments posted from disbelieving South Africans: Where is Ramaphosa & his band of ANC bandits building his next 'BRICS' mansion? – Trevor Only 1 million is left as we speak – Victor New swimming pool for Cyril – Anton The only road fixed will be to the bank – Ingrid Ready, steady loot – Nick Gonna fix there pockets – Faadhil Obviously 70% is going to Ramaphosa's pocket – Misheck We can be assured that 70 to 80 percent will be filling the pockets of the gravy cabal – Faried Are they nuts giving South Africa money – Heather More likely to fix the roads to fat cats villa's in Dubai – Ken In 2019, Sanral's attempt to access funding from the NDB faltered due to the National Treasury's concerns over legacy debt linked to the now-scrapped Gauteng e-toll system. That system had been introduced to finance freeway expansions in the country's economic hub but faced public and political backlash. With the tolling matter now resolved, the state has approved a R16.5 billion debt ceiling for the agency, clearing the path for more infrastructure borrowing. The New Development Bank, established in 2015 by the BRICS bloc (Brazil, Russia, India, China, and South Africa), aims to support infrastructure and sustainable development projects across member and emerging economies. The loan to Sanral highlights the growing role of BRICS-aligned institutions in supporting strategic infrastructure investments in South Africa. Once all approvals are secured, the loan is expected to accelerate progress on much-needed freeway upgrades that support trade, mobility, and economic growth. According to Sanral, the loan specifically targets critical economic corridors, namely: N2 – especially crucial sections in KwaZulu-Natal that support port access and regional commerce – especially crucial sections in that support port access and regional commerce N3 – the primary trade route between Johannesburg and Durban , vital for freight movement – the primary trade route between and , vital for freight movement N1 – a central north-south artery running through Gauteng and beyond These upgrades will include adding lanes, resurfacing pavement, and rehabilitating related infrastructure such as bridges and intersections. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
7 days ago
- Business
- The South African
South Africa gets R7 billion to fix roads thanks to BRICS loan
The South African National Roads Agency (Sanral) is set to access a R7 billion loan from the New Development Bank (NDB) to fund major upgrades to the country's transportation infrastructure. The announcement was made during a loan agreement signing ceremony in Johannesburg on Tuesday. Sanral CEO Reginald Demana confirmed that final approval is pending legal and regulatory processes, including a legal opinion from the state law adviser and foreign exchange clearance from the South African Reserve Bank. 'The state law adviser must give a legal opinion that it's all sound; we expect that to come within the next two weeks,' said Demana. The funding will go toward a R12.7 billion upgrade of four major freeways, alongside additional national road projects. The deal marks a significant boost for infrastructure development following the government's recent resolution of issues surrounding Sanral's controversial e-tolling system. In 2019, Sanral's attempt to access funding from the NDB faltered due to the National Treasury's concerns over legacy debt linked to the now-scrapped Gauteng e-toll system. That system had been introduced to finance freeway expansions in the country's economic hub but faced public and political backlash. With the tolling matter now resolved, the state has approved a R16.5 billion debt ceiling for the agency, clearing the path for more infrastructure borrowing. 'We still need to go to the market to raise additional funding,' Demana said, adding that Sanral is engaging domestic institutions, bond investors, banks, and other development finance institutions to meet its broader funding needs. 'The NDB might also be interested to look at more rand funding as part of that.' The New Development Bank, established in 2015 by the BRICS bloc (Brazil, Russia, India, China, and South Africa), aims to support infrastructure and sustainable development projects across member and emerging economies. The loan to Sanral highlights the growing role of BRICS-aligned institutions in supporting strategic infrastructure investments in South Africa. Once all approvals are secured, the loan is expected to accelerate progress on much-needed freeway upgrades that support trade, mobility, and economic growth. According to Sanral, the loan specifically targets critical economic corridors, namely: N2 – especially crucial sections in KwaZulu-Natal that support port access and regional commerce – especially crucial sections in that support port access and regional commerce N3 – the primary trade route between Johannesburg and Durban , vital for freight movement – the primary trade route between and , vital for freight movement N1 – a central north-south artery running through Gauteng and beyond These upgrades will include adding lanes, resurfacing pavement, and rehabilitating related infrastructure such as bridges and intersections. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
22-07-2025
- Business
- IOL News
Sanral secures R7bn loan with BRICS bank to enhance key economic corridors
This significant financial move follows the approval of a R16.5bn borrowing limit earlier this year, which included a notable R7bn guarantee specifically earmarked for the NDB loan. Image: Supplied The South African National Roads Agency Limited (Sanral) has announced the successful conclusion of a loan agreement worth R7 billion with the New Development Bank (NDB). The NDB is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) with the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries. This significant financial move follows the approval of a R16.5bn borrowing limit earlier this year, which included a notable R7bn guarantee specifically earmarked for the NDB loan. The loan is set to bolster various ongoing projects within Sanral's toll portfolio, with a focused emphasis on enhancing critical economic corridors along the N2 and N3 routes in KwaZulu Natal, as well as the N1. This development signifies a pivotal investment in South Africa's transport infrastructure, vital for supporting economic growth and improving connectivity across key regions. Though the NDB loan is a cornerstone of Sanral's funding strategy, the agency on Tuesday indicated that the remaining portion of the borrowing limit will be utilised to raise additional funds in the domestic market. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading This includes exploring opportunities through bonds and syndicated or bilateral loans, thereby ensuring a comprehensive financial strategy that optimally supports its mandate. Sanral expressed optimism about the timing of this long-awaited funding, asserting that it will have a profound positive impact on the company's ability to execute its projects successfully. This loan, which will become effective upon the fulfilment of standard conditions precedent, not only amplifies Sanral's financial capacity but also reaffirms its commitment to enhancing the country's infrastructure. As Sanral moves forward with this funding, the agency is committed to paving the way for progress within the South African economy and its communities, which stands to benefit from improved transport links. The projects funded by this loan will not only facilitate smoother transport but also promise to encourage trade and economic activities in the regions served. BUSINESS REPORT
