The New Development Bank established by the five BRICS nations will play an important role in stitching together sub-Saharan African countries into one economic community.

The World Bank estimates that sub-Saharan Africa requires US$93 billion per annum to meet its infrastructure needs. The region, however, only manages to raise half of this.

Minister of Finance Nhlanhla Nene has said that the South African economy is performing below its potential and below the level of growth that is required to deal with the country’s triple challenges of unemployment, poverty and inequality. The low growth is explained by a combination of domestic and global factors.

Over the period ahead, however, new power plants and transport infrastructure will lift constraints to output, a stronger global recovery will support exports, and growth in sub- Saharan Africa will promote expanded trade and investment, Nene stated.

The minister argued that this has resulted in a large funding gap that provides the space for the New Development Bank to add value. “We believe that the significant number of the bank’s clients will come from sub- Saharan Africa.”

“There are a number of projects in Africa that could unlock the growth potential of the region, but the challenges faced with converting these into bankable projects has frustrated the pace of Africa’s development agenda, the project preparation facility that will be embedded in the business of this bank will bridge the gap in addressing this challenge. And with this mind, this institution is well placed to provide complementary support to address the infrastructure deficiency, unlock development and economic growth potential,” he concluded.