South Africa has indicated its willingness and desire to offer Johannesburg as a host for the BRICS Development Bank.

Trade and Industry Minister Rob Davies told the media it would be an advantage if the BRICS Development Bank was to be located in Johannesburg, SAnews.gov.za reported.

“We think that from a point of view of the functioning of the institution, with some of its key roles, funding infrastructure and investing in the African continent, the bank being located in South Africa is going to be a huge advantage from the point of view of the advocacy of the bank,” he said.

Davies pointed out that South Africa has the connections, facilities and the ability to run an institution that deals with places other than the African continent. However, he said the prime motivation and argument is in terms of being able to play that role in an optimal manner.

 

BRICS Development Bank

The announcement comes ahead of the sixth BRICS summit to be held in Brazil this week.

The idea of the bank was first raised at the fourth BRICS summit, but the BRICS Leaders agreed to the establishment of a new development bank at the fifth summit held in Durban last year. They indicated that the initial capital contribution to the bank should be substantial and sufficient for the bank to be effective in financing infrastructure.

The five member countries – Brazil, Russia, India, China and South Africa – decided that the bank will not limit its mandate to funding projects in the BRICS countries, but will also invest in infrastructure in other developing countries, particularly in Africa.

Currently no decision had been taken on the location of the BRICS Development Bank.

 

Trade investment cooperation

Meanwhile, Davies said that a study commissioned by South Africa will be tabled at the meeting of trade ministers this week. The study proposes that value added trade investment cooperation takes place between the BRICS countries.

The study was aimed at ensuring that the countries all achieve mutual trade opportunities that will not be biased or favour trade ambitions of other countries.

The BRICS Business Council — launched at the eThekwini summit — will table a report on how governments can make it easier for businessmen from the five countries to do business, SAnews.gov.za reported.