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The South African
10 hours 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
a day 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
2 days ago
- 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
IOL News
2 days ago
- Business
- IOL News
BRICS+ Series: BRICS is Facilitating France's declining Colonial Grip on West Africa
Togo's Foreign Minister Robert Dussey (L), South Sudanese President Salva Kiir (C) and Senegalese President Macky Sall (R) attend a meeting during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg. Image: AFP By 2025, the slow death of Françafrique, France's long-standing political, economic, and military dominance in West and Central Africa has evolved from a continental rejection into a strategic recalibration. Playing part of this transition is the rise of the BRICS bloc, now expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the UAE with partner countries such as Nigeria, Uganda, Thailand, etc, which is rapidly becoming the primary force enabling African nations to break free from Paris' postcolonial shadow. Through financial alternatives, infrastructure investment, and political alignment, BRICS is steadily dismantling the pillars that once propped up French influence in West Africa. France traditionally exerted influence in the region through elite political networks, military partnerships, and currency control, notably via the CFA franc. However, as France's credibility declines, BRICS nations have moved to fill this void with attractive alternatives. China, India, Russia, and newer BRICS+ members are now offering African countries different options for support, IMF-backed structural adjustment programs, and economic partnerships that are not exclusive. From Military Expulsion to Security Realignment France's military withdrawal has revealed the most significant weakness in the Françafrique system. After conducting security operations for years under Operation Barkhane, France was expelled from Mali (2022), Burkina Faso (2023), and Niger (2023). These three nations, now members of the Alliance of Sahel States (AES), have publicly sought security assistance from Russia. The Wagner Group initially, and later state-sponsored military training initiatives, largely supplanted the French presence. These agreements, despite their contentious nature, marked a turning point: France's monopoly on security in its former colonies was over. BRICS, via its New Development Bank (NDB), offers West African nations like Senegal and Guinea an alternative to Western-controlled financial institutions by providing funding for infrastructure and energy projects by 2025. The NDB, headquartered in Shanghai, helps countries avoid political conditions often tied to IMF or AFD loans, fostering financial independence. Challenging the CFA Franc with BRICS Alternatives The CFA franc, historically representing French economic dominance in 14 African nations, faces diminishing influence due to BRICS-backed financial technologies. The 2024 piloting of BRICS Pay in Guinea and Togo aims to streamline cross-border transactions using local currencies, reducing reliance on SWIFT. Concurrently, BRICS nations are assisting the development of the ECOWAS common currency, the Eco. Trade Diversification Beyond France West Africa is experiencing a rapid diversification of its trade partnerships. While China remains the leading trading partner, countries like India, Brazil, and the UAE are significantly expanding their economic influence. This shift is highlighted by India's concessional oil agreements with Senegal, Russia's growing energy ties with Mali, and the UAE's strategic investments in West African ports and logistics. These developments signal a departure from France's historical extractive and monopolistic commercial dominance. Data from the African Development Bank (AfDB) reveals that BRICS nations now account for nearly 35% of West Africa's total trade, a substantial rise from 22% in 2015. Senegal's Strategic Pivot Toward BRICS President Faye of Senegal plans a strategic shift, re-evaluating military ties with France, seeking BRICS observer status, and collaborating with India and China on digital infrastructure and solar energy. This emphasis on sovereignty aligns with other BRICS-sympathetic African leaders who see the bloc as a balanced development path. Redefining Postcolonial Independence in West Africa France's cultural influence is declining. Its soft power, once strong through language, media, and education, is diminishing as younger generations favor English, Arabic, and local languages. Meanwhile, BRICS-supported media like RT and CGTN are gaining traction in Africa by offering alternative viewpoints, exemplified by CGTN Africa's 2024 French platform challenging France's perceived role as Africa's automatic partner. France is attempting to rebrand its Africa policy, aiming to be seen as a development partner rather than a neocolonial power. However, these efforts are often undermined by widespread protests, youth activism, and the tangible investments made by BRICS nations. This has created friction in the decline of Françafrique. A 2024 Afrobarometer poll revealed that over 70% of respondents in Francophone West Africa held positive views of BRICS countries, while fewer than 30% trusted France to act in their nation's best interest. BRICS's emergence is playing one of the major roles in the decline of Françafrique. By offering alternative financing, promoting trade diversification, fostering political solidarity, and encouraging technological cooperation, BRICS is enabling West African countries to redefine their interactions. The long-standing French dominance, once considered insurmountable, is now actively being dismantled. Should this trend persist, BRICS could not only surpass France in West Africa but also fundamentally reshape the meaning of postcolonial independence for the region. Written by: Dr Iqbal Survé Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN *Sesona Mdlokovana Associate at BRICS+ Consulting Group African Specialist ** MORE ARTICLES ON OUR WEBSITEhttps:// ** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates
Barnama
16-07-2025
- Business
- Barnama
- Mapping The Rise Of BRICS: Declarations, Designs And A Future Unfolding
Opinions on topical issues from thought leaders, columnists and editors. A systematic review of the BRICS declarations from 2009 to 2025 reveals not fragmentation but thematic coherence and steady institutional growth. The bloc has moved from reactive voice to constructive architect. With the 17th BRICS summit just concluded in Rio de Janeiro, the BRICS locomotive continues to move, quietly yet unmistakably, through the shifting contours of global power. Beyond headline debates on expansion, currency alternatives, or institutional reform lies a deeper continuity: the deliberate, increasingly coordinated effort of the Global South to shape a post-hegemonic order, one summit at a time. Over 17 years, several core themes have remained constant (Figure 1). Calls to reform global governance, particularly the UN Security Council and Bretton Woods institutions, have sharpened. So too have affirmations of sovereignty, non-interference, and multilateralism grounded in international law. BRICS has consistently opposed unilateral coercive measures, foreign intervention, and extraterritorial application of law, while emphasising peaceful dispute resolution and sovereign equality. Yet critics persist. Some dismiss BRICS as little more than a talk shop – long on declarations, short on delivery. But that view no longer holds. A close reading of the declarations reveals growing technical coordination, policy continuity, and formalised structures. The very texts once cited as evidence of vagueness now offer proof of a maturing governance ecosystem. In the financial domain, BRICS' critique of dollar dominance has moved from posture to practice. The New Development Bank (NDB) and the Contingent Reserve Arrangement were early steps. Most recently, the bloc's declaration proposed the incubation of a BRICS Multilateral Guarantees (BMG) mechanism within the NDB and technical advances on cross-border payment interoperability. While not yet named, these developments increasingly reflect the logic of Mutual Credit Clearance (MCC) -a decentralised, self-balancing trade system that avoids both hard currency dependency and inflationary credit creation, as EMIR Research proposed in 'BRICS' Currency Dilemma: A Necessary Quality Leap Beyond the Dollar' (2024). Support for Africa, Latin America, and least developed countries has moved from symbolism to structured frameworks. The introduction of BRICS Partner Country status, along with the refrain 'African solutions to African problems', signals transition from advocacy to architecture. Peace and security cooperation has also matured. What began as rhetorical condemnation of terrorism is now underpinned by working groups, action plans, and technical coordination platforms. BRICS declarations increasingly address regional conflicts – Palestine, Syria, Sudan, Ukraine – not only in solidarity but as a normative voice for international law and humanitarian principles. Recent years also mark a decisive shift in BRICS' identity – from platform to prototype. Since 2021, technology governance and AI have become central. The bloc has shifted from addressing digital access to asserting digital sovereignty, with new frameworks on AI governance, cyber norms, and sovereign digital infrastructure. BRICS is also becoming institutionally dense. No longer just a summit platform, the bloc's operational ecosystem now includes permanent working groups, interbank platforms, think tank networks, and civil society forums. Declarations increasingly reference cross-pillar coordination, 2030 strategies, and detailed technical annexes—hallmarks of real governance capacity. Another shift is BRICS' growing role in humanitarian diplomacy and legal accountability. Since 2020, declarations have placed stronger emphasis on humanitarian law, unimpeded aid access, and explicit references to the International Court of Justice. The bloc is positioning itself as a normative counterweight in a system long monopolised by Western legal framing. This institutional maturity is echoed in the block's evolving language. Early BRICS (2009–2014) spoke in terms of voice, representation, and multipolarity. Recent declarations use a more assertive vocabulary: agile, equitable, accountable, inclusive governance. This shift signals BRICS' ambition to offer a values-based alternative, not merely a structural counterweight. Crucially, BRICS Summit 2025 marks a geopolitical breakthrough. With Indonesia admitted as a full member and eleven additional Partner Countries recognised, including Malaysia, BRICS is operationalising a decentralised, concentric model of expansion. This model preserves consensus while broadening reach. Even its economic language has shifted. While critique of Western trade asymmetry persists, it now comes wrapped in technical nuance: exchange-rate risk mitigation for public-private partnerships, infrastructure information hubs, ESG-aligned investment platforms, and the integration of digital green finance. 'BRICS exposure' is now entering investment strategy vocabularies – not as political signalling, but as a credible diversification play. Malaysia's moment: from observer to orchestrator With Malaysia now chairing ASEAN, the deepening and diversification of BRICS+ offers a strategic opening – not to choose sides, but to help shape the global playing field. Long known for its diplomatic pragmatism, multilateral credibility, and evolving MADANI framework, Malaysia is uniquely placed to serve as both bridge and architect in this era of recalibration. Already recognised as a BRICS Partner Country, Malaysia could pursue strategic alignment across three domains: monetary innovation, technology governance, and development cooperation. While BRICS declarations have yet to explicitly adopt Mutual Credit Clearance (MCC), the logic behind it is taking form. In such a system, only countries that produce goods and services of recognised value to others can sustainably issue credit. Malaysia, with its globally demanded exports – from halal goods and palm oil to semiconductors and green components – meets this criterion. Its consistent trade surpluses, diversified production base, and stable monetary governance position it not just as a participant, but as a node of stability and trust in any future BRICS+ MCC-like arrangement. This alignment of trust and production connects directly to the Multilateral Guarantees (BMG) mechanism now incubating within the NDB. Designed to de-risk infrastructure and sustainable development projects, the BMG reduces reliance on Western risk assessments and credit agencies. Malaysia's institutional credibility and investment-grade governance make it well-placed to act not only as a beneficiary but as a regional anchor. In combination with MCC-like logic, BMG offers the other side of the equation: a collective trust mechanism to ensure productive intent translates into investable outcomes. Malaysia's strategic value extends further. In the digital and financial domains, it could host an ASEAN–BRICS+ forum on AI governance, data flow standards, and cybersecurity. In the development sphere, Malaysia can lead on Islamic finance, halal regulatory convergence, and biodiversity frameworks – embedding value-based norms in the emerging Global South architecture. With regional neighbours such as Indonesia now full BRICS members, the potential for regulatory coherence and innovation diplomacy is unprecedented. The BRICS story is no longer about bloc formation – it is about framework evolution. The question is not whether the world is becoming multipolar. It is whether emerging actors like Malaysia will step forward – not merely to adapt to new structures, but to shape them. In this spirit, Malaysia's path lies not in alignment or opposition, but in co-creation -bringing ASEAN's voice into the core of BRICS+, embedding mutual credit into trade logic, and aligning inclusive governance with pragmatic multilateralism. The moment is open, but the window is narrow. This is not just a chance to observe history. It is an invitation to help design its next chapter. -- BERNAMA Dr Rais Hussin is the Founder of EMIR Research, a think tank focused on strategic policy recommendations based on rigorous research.
