THE RISE OF DEVELOPMENT FINANCE INSTITUTIONS: SOUTH AFRICA, BRICS AND REGIONAL STRATEGY

The document analyzes the emergence of the BRICS grouping as a non-hegemonic alternative to Western-dominated financial institutions, focusing on the creation of the New Development Bank (NDB) to address infrastructure deficits in the developing world. It details South Africa's strategic use of the NDB and its own development finance institutions, such as the Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC), to promote regional integration and economic growth within the SADC region and across the African continent.

• The BRICS grouping was established as a social institution and an alternative to the G7, driven by a shared dissatisfaction with Western dominance of multilateral institutions and a desire for increased representation in international financial institutions.
• The New Development Bank (NDB) serves as a mechanism for BRICS countries to address infrastructure supply in the developing world, leveraging China's financial strength to create a comparative advantage in this sector.
• South Africa intends to use the NDB and the Africa Regional Centre to support the Programme for Infrastructure Development in Africa (PIDA), aiming to stimulate regional integration and structural transformation in resource-dependent African economies.
• South Africa utilizes the Development Bank of Southern Africa (DBSA) to support investment and project bankability across all 15 SADC member states, as of August 2013.
• The Industrial Development Corporation (IDC) expanded its mandate via the Industrial Development Act of 1997 and a 2001 amendment to finance cross-border industrial development across Southern Africa and the wider continent, approving approximately $2 billion in funding between 2001 and 2010 for 41 projects in 17 African countries.
• There is a risk that South African development finance institutions may be crowded out of the competitive landscape by the superior financial resources of China and the NDB.
• The South African government faces internal contradictions regarding its DFIs, as it demands evidence of domestic job creation from the IDC while simultaneously pursuing continental infrastructure investment.

APA

Qobo, M., & Soko, M. (2015). THE RISE OF DEVELOPMENT FINANCE INSTITUTIONS: SOUTH AFRICA, BRICS AND REGIONAL STRATEGY. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-3.pdf

Chicago

Qobo, Mzukisi, and Mills Soko. THE RISE OF DEVELOPMENT FINANCE INSTITUTIONS: SOUTH AFRICA, BRICS AND REGIONAL STRATEGY. South African Institute of International Affairs, 2015. https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-3.pdf.

Wikipedia

{{cite report |last1=Qobo |first1=Mzukisi |last2=Soko |first2=Mills |title=THE RISE OF DEVELOPMENT FINANCE INSTITUTIONS: SOUTH AFRICA, BRICS AND REGIONAL STRATEGY |publisher=South African Institute of International Affairs |date=2015 |url=https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{qobo2015rise, author = {Qobo, Mzukisi and Soko, Mills}, title = {{THE RISE OF DEVELOPMENT FINANCE INSTITUTIONS: SOUTH AFRICA, BRICS AND REGIONAL STRATEGY}}, institution = {South African Institute of International Affairs}, year = {2015}, url = {https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }