Zimbabwe officially joined the Shanghai-based BRICS New Development Bank on Wednesday, marking a significant step to secure development finance and support the country’s industrialization drive after decades of limited access to traditional international loans.
For more than twenty years, Zimbabwe has struggled to secure loans from traditional international financial institutions due to accumulated debt. Seeking alternative sources of development finance, the government pursued accession to the multilateral lender created by emerging economies.
Accession to the Shanghai-Based New Development Bank
Finance, Economic Development and Investment Promotion Minister Mthuli Ncube announced on Thursday that Zimbabwe was officially admitted as a member of the New Development Bank on Wednesday. Minister Ncube confirmed the milestone during a panel discussion at the inaugural Zimbabwe Industrialization Conference and Expo in Harare.
Speaking at the Zimbabwe Industrialization Conference and Expo in Harare, Ncube confirmed that Zimbabwe was admitted as a member of the Shanghai-based institution on Wednesday, unlocking crucial credit and funding opportunities for the country.
In May, Ncube announced the start of official negotiations on Zimbabwe’s accession to the NDB. Zimbabwe applied to join the bank in 2023, with formal accession negotiations progressing earlier this year. The country has also formally applied to join the BRICS group.
The New Development Bank was established in 2014 by Brazil, Russia, India, China, and South Africa, officially beginning operations in 2015, with a mission to mobilize resources for infrastructure and sustainable development projects in BRICS member nations and other emerging-market economies and developing countries. The organization is headquartered in Shanghai.
Funding Industrial Growth and Securing Credit Lines
According to The Herald, Minister Ncube said joining the BRICS bank forms part of the Government’s broader strategy to secure financing for Zimbabwe’s industrialisation drive. He explained that the Government is engaging several financial institutions to access credit that will help expand the country’s productive sectors.
“We are working with many banks to fund our industry and we recently joined the BRICS bank, which is a positive step in acquiring credit lines that can power our industry,”
Mthuli Ncube, Finance, Economic Development and Investment Promotion Minister
The Herald notes that NDB membership should open up long-term financing for infrastructure and industrial projects for Zimbabwe. Joining the BRICS bank is expected to support the country’s industrialisation agenda by providing access to financing for key infrastructure and economic development projects.
The Government believes access to new credit facilities will help accelerate industrial development, strengthen manufacturing and support broader economic transformation. The latest development comes as the Government continues to pursue policies aimed at attracting investment and expanding Zimbabwe’s industrial capacity.
Zimbabwe has taken a major step towards accessing new sources of funding by becoming a member of the New Development Bank (NDB), commonly known as the BRICS Bank. Finance, Economic Development and Investment Promotion Minister Mthuli Ncube announced the development during a panel discussion at the inaugural Zimbabwe Industrialisation Conference and Expo.
Official Statements and Expected Next Steps
On the social media platform X, Zimbabwe’s Ministry of Information, Publicity and Broadcasting Services said that the milestone secures access to development finance, strengthens economic ties with BRICS nations, and gives Zimbabwe a voice in global decision-making.
“A much more detailed and formal announcement will be made later, but these are some of the measures that we have put in place to secure funding for our industry,”
Mthuli Ncube, Finance, Economic Development and Investment Promotion Minister
While confirming the development, the Finance Minister indicated that more information would be released in due course. The minister said the government would make a more detailed official statement later.
Obtaining membership is expected to unlock long-term financing for key infrastructure projects as Harare continues pursuing policies aimed at attracting investment and expanding industrial capacity.
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