Analysing the New Development Bank's Core Objectives 2016-2022

This research paper evaluates the alignment between the New Development Bank's (NDB) strategic goals and its actual lending practices from 2016 to 2023. It finds that while the NDB has expanded its mandate to support climate action and sustainable development, it struggles to meet its targets for local currency financing and non-sovereign lending.

• The NDB has failed to meet its target of 30% financing for non-sovereign borrowers by 2026; from 2016 to 2023, sovereign guarantee projects accounted for 84.3% of total financing (USD 28 billion), while non-sovereign projects totaled nearly 15% (almost USD 5 billion).
• The NDB is falling short of its 30% target for local currency financing by 2026, with over three-quarters of financing provided in 'hard currency' (USD, Euro, Swiss Francs) as of 2023. Only one-fifth of approved financing was granted in local currency, with RMB accounting for 15% of the total (USD 5 billion).
• Transport infrastructure was the primary sector receiving funding up to 2023, with USD 11 billion in approvals (35% of the total). Other significant sectors included 'multiple areas' (11%, USD 3.6 billion), 'clean energy and energy efficiency' (11%, USD 3.5 billion), and 'water and sanitation' (10%, USD 3.2 billion).
• The NDB's strategic focus has shifted from its 2017-2021 strategy, which targeted two-thirds of commitments for sustainable infrastructure, to its 2022-2026 strategy, which commits 40% of total approval volume to projects contributing to climate change mitigation and adaptation.
• Geopolitical tensions and shifts have impacted the NDB, including the 2022 ban on funding for Russia and the admission of new members such as Egypt and the United Arab Emirates.

APA

Molinari, A., & Ceballos, R. (2024). Analysing the New Development Bank's Core Objectives 2016-2022. Africa Policy Research Institute. https://afripoli.org/analysing-the-new-development-banks-core-objectives-2016-2022

Chicago

Molinari, Andrea, and Rocío Ceballos. Analysing the New Development Bank's Core Objectives 2016-2022. Africa Policy Research Institute, 2024. https://afripoli.org/analysing-the-new-development-banks-core-objectives-2016-2022.

Wikipedia

{{cite report |last1=Molinari |first1=Andrea |last2=Ceballos |first2=Rocío |title=Analysing the New Development Bank's Core Objectives 2016-2022 |publisher=Africa Policy Research Institute |date=18 November 2024 |url=https://afripoli.org/analysing-the-new-development-banks-core-objectives-2016-2022 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{molinari2024analysing, author = {Molinari, Andrea and Ceballos, Rocío}, title = {{Analysing the New Development Bank's Core Objectives 2016-2022}}, institution = {Africa Policy Research Institute}, year = {2024}, month = nov, url = {https://afripoli.org/analysing-the-new-development-banks-core-objectives-2016-2022}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }