Russia
Source: tass.com

MOSCOW, April 1. /TASS/. Russian Deputy Foreign Minister Sergei Ryabkov and Foreign Secretary of India Vijay Gokhale discussed cooperation at the BRICS venue and the problems of arms control, the Russian Foreign Ministry said in a statement released on Monday.

"[The sides] discussed cooperation in the BRICS, problems of the leading multilateral export-control regimes, including New Delhi's application for membership in the Nuclear Suppliers Group (NSG), other issues of arms non-proliferation and control, as well as current issues on the international agenda of mutual interest," the ministry said.

South Africa
Source: www.dirco.gov.za

Council members of the respective chapters of the BRICS Business Councils,
Captains of industry,
Honourable delegates,
Ladies and gentlemen.

I must preface my address by congratulating the newly appointed South African BRICS Business Council. I am very pleased with its composition, made up of people with extensive business experience and acumen with a depth of knowledge that is certain to guarantee us success both as South Africa and as BRICS partners. The South African Business Council consists of Busi Mabuza, Dr Ayanda Ntsaluba, Dr Stavros Nicolaou, Bridget Radebe and Elias Monage, each with impressive credentials. I am certain that in their hands the council will be reinvigorated.

Each one of them has impressive credentials that will boost our reputation. Since their appointment on 5 March 2019, there has been a significant increase in the activities of the council, which bodes well for the future.

We want to congratulate our Brazilian partners on the successful elections of a new government and president. 2019 is Brazil's year of hosting the rotational Chairship of BRICS and I want to thank them for allowing South Africa, a year after its own BRICS Chairship, to host this meeting. We welcome the assurance from Brazil that the new Government is committed to BRICS and to continue with us. As you would know, this is a very important partnership for all of us. We have been inundated with requests from other countries to join BRICS, which should indicate the important role we play. You meet at a time of great expectations and great possibilities.

I am delighted to deliver the closing remarks at this meeting, particularly in view of South Africa's recent hosting of a number of international events, including the successful hosting of the Fourth Annual Meeting of the New Development Bank (NDB) from 1 to 3 April 2019 in Cape Town.

It is recalled that, among others, at this meeting, which took place under the theme "Partnership for Sustainable Development", a loan agreement was concluded between Eskom and the NDB for a project aimed at supporting the development of the national grid connection infrastructure as well as renewable energy to reduce the country's dependence on fossil fuels. It is excellent news for South Africa as it will go a long way towards strengthening the country's economic development prospects.

You might also be aware that South Africa will chair the African Union (AU) in 2020 to usher in the Africa Continental Free Trade Area. A vibrant and energetic council is a very necessary partner for this. I want to assure the Business Council that you have our full support as you navigate your way around the African continent. Yesterday, we reached the 22nd country to sign the Africa Continental Free Trade Area, which means we have met the minimum threshold for the agreement to come into effect. It bodes well for Africa, it bodes well for our country and it bodes well for the Business Council as it opens up Africa for new business opportunities.

I hope that the final report emanating from this meeting will also indicate what precisely business needs from government and specifically my department, so that we can find ways of assisting you as you make use of these new business opportunities.

We meet at a time when some of the southern African nations are reeling from the devastation of Cyclone Idai, This cyclone has left untold misery in its wake and its humanitarian challenges are immense. The outbreak of cholera as an aftermath of the cyclone has complicated the lives of the inhabitants of these countries. The reality of global warming is a factor that we must embrace and come to terms with. I wish to extend a work of appreciation to all those NGOs and businesspeople who have come to the aid of the devastated communities in Mozambique, Malawi and Zimbabwe.

We also meet against the backdrop of the Southern African Development Community (SADC) Solidarity Conference with the People of Western Sahara. We are pleased to have been asked by SADC to host this two-day conference that was an outstanding success. We reaffirm our principled position to stand side by side with those countries that still face oppression and domination. Our struggle has taught us such a vital lesson to give solidarity and fellowship to those in need.

As you may be aware, South Africa hosted the 10th BRICS Summit in Johannesburg last year under the theme: "BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution". The main outcomes of the 10th BRICS Summit were informed by South Africa's Chairship priorities, notably the theme that espoused the cultivation of "inclusive growth and shared prosperity in the 4th Industrial Revolution".

The BRICS leaders endorsed the establishment of a BRICS Working Group on the Fourth Industrial Revolution through the BRICS Partnership on New Industrial Revolution (PartNIR) and its Advisory Group, consisting of respective representatives of BRICS Ministries of Industry. The objective of this initiative is to maximise the opportunities and address the challenges arising from the Fourth Industrial Revolution. In addition to this initiative, the establishment of the BRICS Networks of Science Parks, Technology Business Incubators and Small and Medium-sized Enterprises was also endorsed. A meeting of experts in the field of the Fourth Industrial Revolution was convened in South Africa in December 2018 to take this issue forward.

In relation to the establishment of the physical BRICS Vaccine Research Centre in South Africa, with a view to addressing the common challenges in health, through strengthening coordination and cooperation, the BioVaC Institute in Cape Town, under the stewardship of both the Council for Scientific and Industrial Research and the Animal Research Centre, was identified as the site of Centre. The Science, Technology and Innovation Working Group Meeting of November 2018 in South Africa deferred further discussions around the establishment of the centre to the meeting in Brazil during the course of this year.

The establishment of a BRICS Women's Forum was identified as critical to the promotion of inclusive growth and the development of BRICS societies. A BRICS Senior Officials on Women's Meeting was held in December 2018 to further deliberate on the Concept Note. I would like you to establish a relationship with the BRICS Women's Forum, because they are a source of great energy and innovation.

The possibility of creating a Working Group on Peacekeeping was discussed and adopted, borne from the recognition by BRICS leaders of the importance of United Nations (UN) peacekeeping for the maintenance of international peace and security and the contribution of BRICS countries to UN Peacekeeping. They acknowledged the need to increase BRICS cooperation on this matter and recognised the South African initiative to create a BRICS Working Group on Peacekeeping. This comes at a time when the majority of BRICS countries are members of the UN Security Council, whose job it is to ensure peace and security in the world and this initiative is a very important addition in supporting our work and initiatives. This was a South African initiative, borne out of the fact that we carry a heavy burden in providing peacekeeping on the African continent.

South Africa is a beautiful country, rating possibly right at the top. Is, is at the forefront of our investment drive and we therefore supported the establishment of the BRICS Working Group on Tourism. The BRICS leaders noted that tourism had great potential to contribute to sustainable economic and social development, including fostering greater people-to-people relations. The first official meeting at senior officials level was convened in November 2018.

The BRICS leaders noted the fruitful discussions among the respective BRICS foreign affairs spokespersons that took place on 23 and 24 July and, in this regard, they acknowledged the initiative to establish a BRICS Foreign Affairs Spokespersons Platform. A second meeting of the BRICS Foreign Affairs Spokespersons to further deliberate the modalities around the establishment of a platform of this nature needs to be convened. No doubt, a great deal of language skills will be required here.

Ladies and gentlemen,

It will also be recalled that three agreements/memoranda of understanding (MoU) were signed during the summit aimed at further enhancing sectoral cooperation among the BRICS members, namely:

• The MoU on Regional Aviation. Our condolences go to the families and friends of the people who died in the recent air disaster of an Ethiopian flight. The plane transported a number of personnel employed by the UN and passengers from 35 nations.
• The MoU on Environment. We have to recognise the devastating disaster that cyclone Idai caused in southern Africa. It would be a good gesture if this council responds to the request by the Secretary-General of the UN for support for the affected countries. We are a premier organisation and we should be among the first to respond to a call from the UN.
• The Host Country Agreement between Brazil and the NDB on the matter of Brazil's hosting of the NDB's Regional Office for the Americas

BRICS leaders continue to value and appreciate the efforts of the BRICS Business Council members towards the development of the broader BRICS Business Community, as encapsulated in Paragraph 84 of the Johannesburg Declaration, which reads:

"We acknowledge the contributions of the BRICS Business Council and its 5th Annual Report, as well as of the BRICS Business Forum, to enhancing trade and business cooperation in infrastructure, manufacturing, energy, agribusiness, financial services, regional aviation, alignment of technical standards and skills development. We welcome the establishment of the Digital Economy Working Group within the framework of BRICS Business Council."

The first meeting of BRICS Sherpas/Sous-Sherpas under the auspices of Brazil's Chairship of BRICS was hosted from 13 to 15 March 2019 in Curitiba, Brazil. I believe it was a very successful meeting that also emphasised the critical role that the BRICS Business Council will continue to play within the BRICS architecture. I am informed that during discussions at this meeting, it was evident that, as it relates to economic development and growth, there is great convergence between Brazil's Chairship priorities in 2019 and those of South Africa in 2018, thus further cementing Brazil's commitment to continuity for BRICS. This has been very good news for us and we would like to congratulate you on your achievements. It is greatly appreciated and supported by all our governments.

Ladies and gentlemen, I wish you fruitful deliberations and hope that you will enjoy your stay in our beautiful country.

I thank you.

China
Author: Amanda Lee
Source: www.scmp.com

China will refuse to give up the "special and differential treatment" it enjoys as a developing nation at the World Trade Organisation, in a rebuke to a US proposal that would pare back the privileges China and other nations enjoy on trade.

China is categorised as a developing country at the Geneva-based institution, which affords it "special and differential treatment". This enables China to provide subsidies in agriculture and set higher barriers to market entry than more developed economies.

The dispute reflects a fundamental divide within the WTO that has threatened the future of the global multilateral trading system.

The United States has long complained that too many WTO members – about two-thirds – define themselves as developing countries to take advantage of the terms the status permits them to trade under.

However, countries such as China and India insist that the preferential treatment is an important cornerstone of the global trading system. Despite being the world's second-largest economy and its biggest exporter, Beijing continues to label itself as "the world's largest developing country".

Commerce ministry spokesman Gao Feng said in a press conference on Thursday that China would stand by its position, even as Brazil has agreed to forgo the status in exchange for US support in joining the Organisation for Economic Co-operation and Development, an influential intergovernmental economic organisation with 36 member countries.

"China's position on WTO reform has been very clear. China is the largest developing country in the world," Gao said.

"We do not shy away from our international responsibilities and are willing to assume obligations in the WTO that are compatible with our own economic development level and capabilities. In fact, we do the same and will continue to do this.

"At the same time, we will work with other developing members to firmly uphold our fundamental rights and to voice our common voice and safeguard our development interests," he said.

The US claims that current WTO rules go too far in allowing China to subsidise its industries, support state-owned firms and discriminate against foreign investors. The terms have helped foster problems such as the forced transfer of technology and theft of intellectual property, Washington claims.

At the Boao Forum for Asia in Hainan last week – billed as China's answer to the World Economic Forum in Davos – Zhou Xiaochuan, the former governor of China's central bank, acknowledged that some of the criticisms brought up by the US were valid. US broke WTO rules in tackling Huawei, top Chinese official says

But he said there was also some misunderstanding from other WTO members regarding China's trade practices. "We have substantially reduced market distortions and unreasonable subsidies [in moving from a planned economy to a market economy], but because this is a process of transformation, it is necessary that it has taken many years, so some distortions will remain," he said during a panel discussion on WTO reforms.

"The Chinese government is very willing to speed up the reform process to eliminate this distortion, so these distortions will eventually disappear. [The criticisms] may be caused by a misunderstanding," Zhou said.

"We need to do some clarification work. China is a big country. In the process of implementation, there may be inconsistencies. The implementation at the local level may not be consistent, and local governments may have behaved inappropriately, but this does not represent the Chinese government's stance," he said.

US-China trade deal could be challenged by other nations, WTO chief says

China, India, South Africa and Venezuela have opposed a US proposal to reform the "special and differential treatment", published earlier this year.

The four have already submitted a paper to the WTO saying that the self-classification of developing member status has been a long-standing practice and best serves the WTO's objectives.

The joint letter also claims that many WTO rules have actually favoured the US and other developed countries, in the areas of agricultural support, textile quotas and intellectual property rights protection.

South Africa
Source: www.sabcnews.com

Brics New Development Bank has in the last three years spent $8 billion on infrastructure development among its five member countries.

Institutions such as the Brics New Development Bank will need at least U$90 trillion by 2030, to deal with the global sustainable infrastructure. Currently, they are spending between U$2, 5 and U$3 trillion for infrastructure development.

These startling figures were divulged at the 4th annual New Development Bank (NDB) meeting in Cape Town.

Finance Ministers and bankers from the Brics countries have identified sustainable infrastructure development as key to economic growth and poverty reduction.

Bank of Southern Africa (DBSA) Chief Executive Patrick Dlamini says the need for the development of infrastructure has never been as urgent as it is today.

Since its inception three years ago, the NDB has splurged over U$8 billion on infrastructure development among its five member countries.

However, civil society groups from these nations say it runs the risk of committing the same mistakes the World Bank & the International Monetary Fund committed.

Oxfam SA Marian Goldman says the NDB has become very secretive in the manner in which it sends its resources and that it carries out developments without consulting the people who are supposed to be the beneficiaries of those projects.

The NDB and local commercial banks committed themselves to mobilising more resources for infrastructure and sustainable development projects.

Their meeting ended in Cape Town on Tuesday.

South Africa
Author: Rebecca Campbell
Source: www.engineeringnews.co.za

Gauteng Premier David Makhura on Wednesday hailed the Brazil, Russia, India, China, South Africa (Brics) alignment as a force that could promote global inclusive economic growth and help develop Africa.

He was delivering the keynote address at the Brics BusinessCouncil mid-term meeting in Johannesburg.

"Brics is about the future of the global economy," he affirmed. This included reshaping the global economy. He pointed out that the Brics countries represented billions of the world's population. "The Brics countries together are huge."

"We can never underestimate what we can do together," he said. "There is huge opportunity if our businesses work together." He noted that trade between the Brics countries had grown steadily.

"For us in South Africa, Brics is also a platform for advocating for the whole of Africa," he assured. He noted that South Africa could only benefit if Africa grew.

"Africa remains a continent of the future, with its youthful population," observed Makhura. "There is no doubt the Brics economies can play a key role in catalysing Africa's industrialisation and development."

As for Gauteng, the province was the industrial and financialheart of both South Africa and Africa. "Gauteng occupies a special place in the economy of our country and the continent."

Consequently, it could play an important role in developing trade ties between Brics countries and Brics businesses. The province had already established sub-national relationships with regions in China, India and Russia (the equivalent process with Brazil had been delayed by the elections in that country last year).

"Business is done here [in Gauteng]," he emphasised. "Our goal is to [also] grow business tourism, particularly from Brics countries, because that is where the potential lies."

South Africa
Source: ewn.co.za

The meeting is expected to bring together role-players from around the globe.

CAPE TOWN - Cape Town is on Monday hosting the 4th Annual Meeting of the BRICS New Development Bank under the theme "Partnership for Sustainable Development".

The meeting is expected to bring together role-players from around the globe.

On Sunday, ahead of Monday's gathering, the Alternative Information and Development Centre (AIDC) along with other organisations hosted a counter-summit to interrogate the role of BRICS.

The AIDC's Dominic Brown said that one of the findings was that BRICS was not strengthening developing economies.

"It doesn't really provide an alternative. One example would be the kind of imperialist or sub-imperialist role that a lot of the Brics [nations] have been playing in their region and within the global economy."

Russia
Author: Yana Grigoryeva
Source: infobrics.org

Yana Grigoryeva, Intern at the Russian National Committee on BRICS Research - special for InfoBRICS

Now, as in the entire history of China, the metallurgical complex in this country has paramount importance. Particularly it refers to the ferrous metallurgy. China is very famous all over the world for its stock of ferrous metals and manufacture of iron and steel products, especially steel that production`s volume goes beyond the norm. The flow of these goods at the customs border of China is extremely high, and therefore it becomes really important object of customs control and tariff regulation. In order to effectively protect domestic producers and stimulate the production of ferrous metals products, Customs service established particular rated of customs duties.

Iron and steel (72th group in the Harmonized System (HS)) have duty range from 1 to 10% from customs value. The lowest rates were imposed for ferrous waste and scrap; remelting scrap ingots of iron or steel (item 7204 in the HS), and the highest ones for flat-rolled products of stainless steel hot-rolled or cold-rolled (item 7220 in the HS), Bars and rods of stainless steel, hot-rolled, in irregularly wound coils (item 7221 in the HS), angles, shapes and sections of stainless steel (item 7222 in the HS), Wire of stainless steel, in coils (item 7223 in the HS).

Articles of iron or steel (group 73 in the HS) have higher rates of duty (more than 10% from customs value) because they are characterized by higher degree of processing, while goods in group 72 are mainly represented as raw materials.

In addition to customs duties, Customs Service of People`s Republic of China implies regulatory environment:

• possession of export permission certificate;

• automatic certificate of goods` import;

• possession of export permission certificate that applies only to products of the manufacturing industry;

• possession of export permission certificate for goods that volume of international trade is significantly small;

• import customs clearance, full quality control;

• export customs clearance, full quality control;

• permission to import industrial waste.

All of these documents upon request of Customs Authorities must be provided along with goods declaration to allow products to be imported to the territory of China.

Since May 2018, The State Administration of Taxation of the People's Republic of China has reduced the VAT rate on manufactured goods from 17% to 16%.

Today, there is a tendency of global downturn in steel products. Firstly, due to the overproduction of steel in quantitative terms, Chinese factories are trying to reduce the volume of production. Secondly, at the moment in some areas, where the stocks of ferrous metals are directly concentrated, there are a lot of environmental activities conducted to eliminate the effects of air pollution, mainly in cause of overproduction. Customs authorities are actively involved in solving this problem by reducing export duties, and also for the purpose of capital outflow (for example, Russian`s companies are actively invested by China).

Thirdly, the established tariffs contribute to import substitution and export promotion to allow local companies be competitive on the market. This is a consequence of the relatively stable exports of ferrous metals. Fourthly, in the framework of suggested by Xi Jingping the New Silk Road project, some commodity items cannot be transported in containers, because this will be not appropriate in terms of the economic efficiency of transport activities and logistics.

However, in the future, there could be a possibility of using containers for transportation. Non-containerized freight includes iron and steel (except ferro-alloys), railway or tramway track construction material of iron or steel, Tubes, pipes and hollow profiles of cast iron or steel, seamless or open seam, welded, riveted or similarly closed.

Customs tariffs in the People`s Republic of China effectively influence both the market`s condition and the environmental situation in the country. It contributes to the substitution of imported goods with domestic ones, provides sufficient economic security, and also supports environmental activities through more intensive taxation of imported products and import reduction in general. But at the same time, China`s import tariff is quite low and loyal to export, that allows foreign manufacturers to freely enter the Chinese market and supply it with goods that becoming very popular among the people.

However, referring to the trade with the Russian Federation, since 2016 the supply of iron ore has decreased and the supply of non-ferrous metals has increased. The redistribution of Russian exports of ore and metals can be explained by the fact that the global metal market is overstocked, and, consequently, China is actively reducing ironmaking industry and concurrently increasing high-tech production, that uses just non-ferrous metals. In 2018, compared with 2016, the export of iron and steel from Russia fell by 66%, from 24 million dollars to a little bit more than 8 million dollars, and the export of articles of iron or steel fell by 96%, from 109 million dollars to 4.5 million dollars.

And what about the BRICS countries?

Extraction of ore with subsequent metal production is a very developed sector of national economies of BRICS countries. The total stock of India is about 5.5 billion tons of high-quality ores with a content of iron 66-70%. Iron ore stock in Brazil is estimated at 61 billion tons and characterized by a high pure iron content. Brazil is the second largest iron ore exporter after Australia and the leading supplier of raw material to the European and American markets.

The value of Indian ore in the world market is not as good as Brazilian one: Indian ore has a significant content of undesirable elements and impurities, such as alumina, phosphorus and sulfur. Nevertheless, 10% of the total stock - are high-quality blast furnace ores, so it also saves its competitiveness. South Africa is in the top 25 countries-producers and exporters of metal, and already exports 24% of its iron and steel to China.

In 2018, the Chinese metallurgical industry exceeded the annual target in terms of decommissioning obsolete steelmaking capacities. According to official data, this figure amounted to about 35 million tons per year, while it was planned to remove only 30 million tons from the market. However, in 2019, the Chinese government also expects to close about 20 million tons more. Chinese experts estimate that most part of the outdated metallurgical factories, which polluted the environment, now have been eliminated.

Foreign companies of the BRICS countries have all the opportunities for a long, mutually beneficial and productive cooperation with Chinese partners, including in the steel industry. China will still need ferrous metals, especially during the liquidation of most factories. At the same time, countries also have a lot of chances to cooperate in the field of science and innovation (rationalization of environmental management, nanotechnologies in metallurgy, information and communication systems, energy-saving technologies) by promoting joint innovative systems of skills development and proper training, creating specialized training centers and inventing a technology platform of a single information portal to comprehensively offer to all the BRICS countries high-tech technologies, competitive equipment and professional engineering services.

South Africa
Source: www.sanews.gov.za

The President of the National Development Bank, Kundapur Vaman Kamath, says the bank plans to approve development financing amounting to $2.3 billion in South Africa by the end of the year.

Kamath said this when he addressed the fourth annual meeting of the New Development Bank at the Cape Town International Convention Centre on Monday.

"As I briefly mentioned earlier, we launched our Africa Regional Centre in Johannesburg in August 2017. We are pleased to see that it is already bearing fruit. While the Bank only approved three projects from South Africa aggregating US$680 million in the past three years, the Africa Regional Centre has enabled us to quickly identify six projects for 2019.

"Of these, three projects, aggregating US$790 million, were approved by the Board of Directors yesterday. We plan to end the year with total loan approvals of about $2.3 billion in South Africa," he said.

The New Development Bank, which was officially launched at the BRICS Summit in Russia in 2015, is a multilateral development bank established by Brazil, Russia, India, China and South Africa in accordance with the agreement on New Development Bank signed on 15 July 2014 in Fortaleza, Brazil.

The purpose of the bank is to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

Addressing the meeting on Monday, which was also attended by Finance Minister Tito Mboweni, Higher Education Minister Naledi Pandor – in her capacity as the BRICS Inter-Ministerial Committee Co-Chair, Deputy Ministers from BRICS member countries and the bank's governors, Kamath said the bank supports the member countries' commitment to sustainable development.

He said building on a base of 13 loans for $3.4 billion at the end of 2017, the bank approved 17 loans totalling about $4.6 billion in 2018, bringing the total loan book of the Bank to 30 projects, aggregating about $8 billion.

He said in response to the need for non-sovereign lending in member countries, the bank approved four non-sovereign loans aggregating about $1 billion in three countries in the last year, taking its total non-sovereign portfolio to about $4 billion.

"Nearly 80% of our lending is now in the transport, clean energy, and water and sanitation sectors, with urban development and environmental protection also forming a major part. We have also invested in building a strong and more diversified pipeline of projects for 2019," he said.

He said the bank now looks to go beyond the "do-no-harm" approach to incorporate a more transformative approach to development.

"We are focusing on the development impact of our lending through more robust monitoring frameworks and measurement of projects' contributions to our members' SDG commitments. Sustainability therefore remains at the core of everything we do." – SAnews.gov.za

Brazil
Author: Caio Henrique Dias Duarte
Source: infobrics.org

Caio Henrique Dias Duarte, Researcher at the Law School of the University of São Paulo; Director of the University of São Paulo's Network for Diplomacy and National Defense Studies – special for InfoBRICS

The Brazilian Pro Tempore Presidency of the BRICS in 2019 will have as theme economic growth for an innovative future. Being the destination of 30.7 percent of Brazil's exports in 2018, the other BRICS countries accounted for 52 percent of the Brazilian trade surplus in that year alone, rendering the economic relevance that orients Brazil's goals in this mandate most clear.

Choosing economic growth as a motto and associating it with innovation for the future expresses an internal need of fighting economic stagnation in the national economy. With recent failures such as the attempted free-trade agreement between Mercosur and the European Union still lurking in the memory, Brazil is looking to deepen and modernize trade with relevant partners, and this is where the focus in the BRICS comes in: strong and dynamic economies integrated with their respective regional markets.

An innovative future is then in that sense a more digital global economy, with faster and innovative changes that allow it to grow without bureaucratic or even political limitations. It is interesting, then, that we analyse each of the priority points in this mandate:

- Strengthening of the cooperation in science, technology and innovation;

Political differences between the BRICS members come as no surprise, and this is probably one of the reasons that Brazil is adopting the same strategy that the EU and Russia adopted after Crimea in 2014: focusing in science as a way to maintain and enhance cooperation. The reason for this is that although political agendas might not match, scientific feats are welcomed by all sides of the political spectrum and seldomly seem as ideological.

In this sense, technological exchange and the promotion of innovation in the economies of the BRICS can abound, from medical innovations to space technology, there is massive room for cooperation between academias and top-notch industrial segments. One can expect a collective effort for a policy of increases in funding for joint-research in such fields, as in many others that can benefit from the advancements in science and technology.

Focusing in the economic integration and strengthening of the group, the goal of this point will be to foster economic development in a concrete fashion, but it is relevant to state that innovation also means legal cooperation to advance the speed of registering patents, and exchanging technologies with the protection of intellectual property.

- Invigoration of the cooperation on the fight against transnational crime, especially against organized crime, money laundering and drug trafficking;

A main concern for Brazil is transnational crime, ranging from international drug trafficking that increases violence in the cities to money laundering in corruption schemes such as the Odebrecht investigations, currently happening in several countries of Latin America after starting in Brazil. In that sense, curbing those networks is then a priority that is considered both feasible and of relevance to the other BRICS members not only over the aforementioned reasons but also over international terrorism, cybersecurity and border security. Innovation, specially in technology, will be a crucial factor in this point of the agenda.

In the discussion between the BRICS' National Security Authorities this would mean several steps that transcend the signature of treaties, such as the integration of police and intelligence forces in a more fluid way, so as to assure that the flow of capital between the BRICS is not fuelling any illegalities. Although BRICS countries are all members of the Interpol, this point of the Brazilian presidency could mean a new vision in the fight against transnational crime.

Similar movements, such as the Tallinn Manual, a document that seeks to define cybersecurity threats, already sprung in organizations of a military character, such as NATO, but a joint effort against crime coming from a non-military group as the BRICS could redefine discussions in that sense, bringing dissonant perspectives that allow for more representative and efficient forms of action against crime. A relevant aspect of this point would be its relation with the goals of the presidency in increasing innovation, meaning a new use of the ethernet to fight corruption, dissemination of extremist activity and the money flow of transnational crime, which in turn would allow for new technologies to be funded for that matter.

- Enhancement of the cooperation on digital economy;

Digital economy is present in the priority points for the same reason that scientific cooperation is. Understanding the new forms of economic exchange and adapting the BRICS' economies to integrate with them with speed but also safety is a primal concern in a presidency that seeks economic growth in the future.

In this sense, we can expect a special interest of working groups or even the creation of new ones in the field of digital economic innovation: from legal regulation to creating new mechanism for the currency flows of the market, it is possible to integrate the member countries through the usage new tools that have necessarily to be developed collectively.

This will ensure that an agenda that favour development can adapt to the specific realities of the member countries, tending to their limitations but also to their potentialities in a global market in a moment of change and transition towards technological integration.

- Encouragement to the rapprochement between the New Development Bank (NDB) and the BRICS Business Council.

Since the creation of the BRICS Business Council in 2013 and the New Development Bank in 2014 it became clear that one of the most fruitful ways of cooperation amongst the BRICS was the economical path and the projection of a vision of economic development that bore resemblances between the member-countries, that is to say, local and regional development instead of just aggregated value in production. The creation of a working group for digital economy in the Business Council last year is a sign that this idea is advancing.

By doing this, the Brazilian presidency hopes to achieve a bond that will allow for the growth of the NDB in accordance to the needs of the business sectors of each member country, allowing the bank to work in a way that is both in accordance with its goals but also with the needs a dynamic and ever-adapting reality faced by the members of the Business Council. A constant dialogue between those thinking digital economy and the NDB will be crucial for a strong and reactive economic bond that allows for sustainable growth in the member countries.

This leads us to another point of interest in the rapprochement, which is infrastructure. Apart from the consonant agendas that range from civil aviation to energy or even technical norms, infrastructure gains momentum because of the concern that material limitations keep up with the pace of digital innovation and advancements. By using the resources of the NDB and aligning them with the needs expressed by the Business Council, the member countries will be able to harness the full potential of an ever-growing digital economy.

Henceforth, one can take from the priority points of the Brazilian pro-tempore Presidency that there is a clear goal of furthering economic integration with digital modernization, so that any growth that is accomplished is allowed to resist changes and not become obsolete, that is to say, lasting and resilient change.

Many are the groups and international organizations that are faced with technological challenges and changes for their growing integration. In this sense, more than economic growth for a dynamic future, if the concerns that range from cybersecurity to infrastructure are properly coordinated, it is possible to believe that a new front in the BRICS agenda will surface in this presidency, and, if all challenges are met, we might me looking at future presidencies will work with one new priority, making of BRICS also E-BRICS

China
Source: www.ndb.int

The New Development Bank (NDB), a multilateral finance institution established by Brazil, Russia, India, China and South Africa (BRICS) in 2014, plans to almost double its loan book to USD 16 billion this year and increase its impact, as the Bank seeks to broaden its global development partnerships and mobilise more institutional and private capital. These announcements were made at the 4th Annual Meeting of the NDB in Cape Town, South Africa which brought together senior government officials from BRICS countries, leaders of multilateral and national development institutions, distinguished scholars, prominent commercial bankers, captains of industry and representatives of civil society organizations.

"In 2019 the Bank will build on the strong momentum in our operations and aims to double its loan approval book to about USD 16 billion," Mr. K. V. Kamath, President of the NDB, said in his keynote speech at the 4th Annual Meeting of the institution in Cape Town, South Africa. "The Bank will ramp up its hard currency financing from the international capital markets."

In 2018, the NDB approved 17 loans totaling about USD 4.6 billion, building on its base of 13 loans worth USD 3.4 billion as of the end of 2017. That brought the total loan book of the bank to 30 projects worth approximately USD 8 billion by the end of last year.

The NDB also announced that on 31 March 2019 its Board of Directors had approved five additional projects with loans aggregating to approximately USD 1.2 billion, two in China and three in South Africa, taking its total loan book to USD 9.2 billion as of today.

These five new projects include RMB 825 million (USD 123 million) for the Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II); USD 300 million for the Guangxi Chongzuo Urban Water System Ecological Restoration Project; USD 480 million to Eskom for the Environmental Protection Project at Medupi Thermal Power Plant; ZAR 1.15 billion (USD 80 million) to the Industrial Development Corporation (IDC) for its Renewable Energy Sector Development Project; and ZAR 3.2 billion (USD 220 million) to South Africa's Trans Caledon Tunnel Authority (TCTA) for work on the Lesotho Highlands Water Project (Phase II).

During the 4^th Annual Meeting of the Board of Governors of the NDB, its members provided strategic guidance for the Bank and appreciated the growth of the Bank's loan portfolio.

The NDB was established to mobilize resources for infrastructure and sustainable development projects in member states as well as other emerging economies, and the Bank is strongly committed to supporting the sustainable development agenda of its member countries.

"The share of the BRICS countries in world GDP in PPP terms has grown from 30% to 36% since 2010. This growth has put increased pressures on natural resources and the environment. Fortunately, however, our members have explicitly recognized these pressures and are increasingly investing in undoing some of the past damage. Our members are also focusing on implementing development strategies aimed at minimizing adverse impacts in the future. In both these endeavours, the Bank is being called upon to assist," said Mr. Kamath in his keynote speech.

In keeping with the theme of sustainability at this year's Annual Meeting, the Bank announced that it had signed a USD 180 million loan agreement with Eskom to fund the integration of 670 Megawatts (MW) of renewable energy into South Africa's power grid as well as a two-step USD 300 million loan to the Development Bank of Southern Africa (DBSA) to reduce emissions of greenhouse gasses and support renewable energy in South Africa.

"We plan to end the year with total loan approvals of about USD 2.3 billion in South Africa," said Mr. K.V. Kamath, adding that the opening of the Africa Regional Centre (ARC) in Johannesburg in 2017 had helped the NDB make progress in South Africa. In the last three years the NDB approved only three projects worth USD 680 million from South Africa. Importantly, the efforts of the ARC had enabled the Bank to identify six new potential projects for 2019, of which three, worth USD 780 million, were approved on 31 March (see project detail above). The NDB now plans to open additional regional offices in Brazil and Russia and is considering opening an Indian regional office in due course.



Mr. K.V. Kamath said at a press conference at the end of the event's first day that the expansion of the Bank's membership is expected to be discussed at the 11^thBRICS Summit, which will be hosted in Brazil later this year. He also provided greater detail on the Bank's plans to raise capital in local currency in the markets in which the NDB extends loans in order to reduce exchange rate risks to borrowers.

"We will help deepen the capital markets and will be a quality paper issuer given the rating we have," said Mr. K.V. Kamath. The NDB has a AA+ long-term issuer credit ratings from S&P and Fitch.

Mr. Leslie Maasdorp, Vice President and Chief Financial Officer of the NDB, added that the Bank had received regulatory approval for a ZAR 10 billion local currency bond programme in South Africa.

"We are focusing on the development impact of our lending through more robust monitoring frameworks and measurement of projects' contributions to our members' SDG commitments," said Mr. K.V. Kamath. "Sustainability therefore remains at the core of everything we do."

China
Source: www.ndb.int

In line with its mandate of mobilizing resources for infrastructure and sustainable development projects, the New Development Bank (NDB) is ramping up operations in South Africa and strengthening its project pipeline in the country. The Bank is fully committed to bridging the infrastructure gap in South Africa, supporting projects tailored to the country's needs and fully respecting its development priorities and strategies.

New projects approved in 2019

On 31 March 2019, the Board of Directors of the NDB approved three projects from South Africa with loans aggregating to approx. USD 780 mln, bringing the total amount of approvals for South Africa to over USD 1.4 billion.

In the energy sector, the approved projects contribute to reducing pollution and support South Africa's transition to environmentally sustainable and low-carbon economy. In the water sector, the Bank will finance construction of water transfer infrastructure aimed at reducing water scarcity in Gauteng Province, South Africa's economic powerhouse.

Environmental Protection Project for Medupi Thermal Power Plant

In line with its focus on supporting clean energy in South Africa, the Bank will provide a loan of USD 480 million to ESKOM Holdings SOC Limited (Eskom) for Environmental Protection Project for Medupi Thermal Power Plant (TPP).

Medupi TPP is approaching its end of construction and with its planned capacity of 4,800 MW will represent around 10% of the total generating capacity in South Africa, hence being a critical element of the solution to the problem with reliable electricity supplies.

The loan will be used for financing of retrofitting flue-gas desulfurization equipment to make Medupi TPP compliant with South Africa's environmental standards coming into force, thus preventing suspension of its operation.

Renewable Energy Sector Development Project

The proceeds of the Bank's ZAR 1.150 billion (approx. USD 80 mln) loan will be on-lent by Industrial Development Corporation of South Africa to renewable energy sub-projects in the country that contribute to the reduction in carbon dioxide emissions, improvement of RSA's energy sector mix, as well as to the increase of energy efficiency of the economy.

The NDB loan provides IDC with attractive long-term financing to implement the IDC's financing program in renewables focused on the support of private investors in this sector, both large companies and small and medium enterprises, having a significant transformational impact on the South Africa's energy sector. The loan will be provided in the local currency (South African Rand) to avoid currency risk for IDC.

It is planned that as an outcome of the implementation of the Project not less than 500 GWh of electricity will be generated annually from renewable sources leading to savings in CO₂ emissions of around 480,000 tons annually.

Lesotho Highlands Water Project

The NDB will provide a project loan of ZAR 3.2 billion (approx. USD 220 mln) to Trans-Caledon Tunnel Authority (TCTA) for the implementation of Phase II of Lesotho Highlands Water Project and financing the construction of water transfer infrastructure to the benefit of South Africa.

The project will augment the water supply in the Vaal River Basin, home to South Africa's most economically important province, Gauteng. This province is the smallest in the country, but is highly urbanized with almost 15 million people (25% of total population) and it is responsible for 36% of South Africa's GDP. Three other provinces (the North-West, Mpumalanga and Free State provinces) will also be directly benefiting from an increased water supply.

The project will support economic growth and foster sustainable livelihoods of people by increasing the yield of the Vaal River System by almost 15% in the long run, thus reducing water usage restrictions.

Two loan agreements signed

Greenhouse Gas Emissions Reduction and Energy Sector Development Project

On 1 April 2019, New Development Bank and Development Bank of Southern Africa (DBSA) signed the Loan Agreement for Greenhouse Gas Emissions Reduction and Energy Sector Development Project. Under the Agreement, the NDB will provide a loan without a sovereign guarantee to the national financial intermediary DBSA with an amount of up to USD 300 million.

The objective of the Project is to facilitate investments in renewable energy that will contribute to the power generation mix and reduction in carbon dioxide (CO₂) emissions in South Africa, in line with the South African Government's Integrated Resource Plan 2010 and its target of reducing greenhouse gas emissions as articulated in the National Development Plan 2030.

Renewable Energy Integration and Transmission Augmentation Project

On the same date, New Development Bank and ESKOM Holdings SOC Limited signed the Loan Agreement for Renewable Energy Integration and Transmission Augmentation Project. Under the Agreement, the NDB will provide a loan with a sovereign guarantee to Eskom with an amount of USD 180 million.

The project will integrate a total of 670 MW of renewable energy into the Eskom's grid. Modern grid connection infrastructure will be used for renewable energy projects and augmentation of the Eskom transmission network to the identified areas. The project will also help increase electricity supply to the targeted areas for sustainable development.

Local currency financing and ZAR bond programme

In line with the NDB's Strategy, the Bank is committed to contributing to the development of financial markets in its member countries and raising funds in local currencies, including South African Rand. The NDB aims to build a diversified fundraising portfolio in order to efficiently meet its funding needs across various markets and instruments.

The next local currency bond issue of the NDB will be in South Africa. Currently, the NDB is in an advanced phase of preparations for launching a domestic bond programme in South Africa with the size of ZAR 10 billion. Proceeds from the bonds issued under the programme will be used for financing infrastructure and sustainable development projects in South Africa in Rands, supporting economic growth in the country.

Africa Regional Center

The Bank's Africa Regional Center (ARC) of the NDB was opened in Johannesburg in August 2017. The ARC is the face of the Bank for the African continent and it is progressively supporting a growing range of the Bank's work. In a very short period, the ARC has demonstrated its critical role in scaling up the Bank's lending in the country. The ARC is working closely with the Government of South Africa, public and private sector agencies, and other relevant stakeholders to identify projects that have strong development impact to be supported by the NDB.



Background information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB's General Strategy, sustainable infrastructure development is at the core of the Bank's operational strategy for 2017-2021. In August 2018, the Bank received AA+ long-term issuer credit ratings from S&P and Fitch.

China
Source: www.ndb.int

The 4^th Annual Meeting of the NDB Board of Governors (BoG) and the 18^th Meeting of the NDB Board of Directors (BoD) were held in Cape Town, South Africa on 31 March and 1 April 2019 respectively. At the meetings, members of the Boards noted the achievements of the Bank, including expansion of its business, significant growth of loan portfolio as well as the ramp-up of the NDB's borrowings. The Board of Governors also provided guidance for the Bank's future work.

The 4^th Annual Meeting of the NDB BoG was chaired by Mr. Tito Titus Mboweni, Governor of the NDB, and Minister of Finance of the Republic of South Africa.

Mr. Paulo Guedes, Governor of NDB, Minister of Economy of Brazil was elected as the next Chairman of the BoG, and will serve in this position until the end of the next BoG Annual Meeting. It was also decided that the next Annual Meeting of the Bank's BoG will be held in Brazil in 2020.

The Governors approved the Audited Financial Statements for the year ended December 31, 2018 and also approved the Condensed Unaudited Financial Statements for the NDB Project Preparation Fund for the year ended December 31, 2018.

The Governors appreciated that the Bank's loan portfolio had risen to approx. USD 8.1 billion in 2018. As a part of this commitment, the Bank's Board of Directors approved loans worth approx. USD 1.2 billion during their 18^th Meeting on 31 March 2019. Five projects approved during the 18^th BoD Meeting bring the total amount of the Bank's portfolio to over USD 9.2 billion.

The following projects were approved during the 18^th BoD Meeting:

• Zhejiang Green Urban Project – Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II)

The Bank will provide a RMB 825 million (approx. USD 123 million) project loan to the People's Republic of China for Zhejiang Green Urban Project – Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II). The project is aimed at upgrading the urban and rural water supply and sewage facilities and enhancing the economic efficiency of water resources and the effectiveness of water management system in Shengzhou, a municipality in Zhejiang Province in China. The Shengzhou municipality has been facing challenges in water supply and sanitation services. The components of the proposed project include (i) construction of water supply plants and pipelines; (ii) construction of sewage treatment plants and pipelines; (iii) smart digital center for water management; and (iv) capacity building and project management.

• Guangxi Chongzuo Urban Water System Ecological Restoration Project

The Bank will provide a USD 300 million project loan to the People's Republic of China for Guangxi Chongzuo Urban Water System Ecological Restoration Project. The project is aimed at the improvement of urban water systems, restoration of the ecological balance and enhancing flood protection in Chongzuo, a city located in Guangxi Zhuang Autonomous Region. The contents of the proposed project include (i) restoration of the hydraulic circulation of lakes, rivers, wetlands, and channels; (ii) ecological restoration of water adjacent area; (iii) development of water ecological environment monitoring, control and management system; and (iv) capacity building.

• Environmental Protection Project for Medupi Thermal Power Plant

In line with its focus on supporting clean energy in South Africa, the Bank will provide a USD 480 million project loan to Eskom Holdings SOC Ltd. for Environmental Protection Project for Medupi Thermal Power Plant (TPP). The loan will be used to finance retrofitting flue-gas desulfurization equipment, to make Medupi TPP compliant with South Africa's environmental standards coming into force, thus preventing suspension of its operation. Medupi TPP is approaching the end of its construction, and with the planned capacity of 4,800 MW it will represent around 10% of the total generating capacity in South Africa. This would position Medupi TPP as a critical element of the solution to the problem with reliable electricity supplies.

• Renewable Energy Sector Development Project

The proceeds of the Bank's ZAR 1.150 billion (approx. USD 80 mln) loan will be on-lent by the Industrial Development Corporation (IDC) of South Africa to renewable energy sub-projects contributing to the reduction in carbon dioxide emissions, improvement of RSA's energy sector mix, as well as the increase of energy efficiency of the economy. The NDB loan provides IDC with attractive long-term financing for the IDC's program in renewables, focused on supporting private investors. It is planned that as an outcome of the project's implementation not less than 500 GWh of electricity will be generated annually from renewable sources leading to savings in CO2 emissions by around 480,000 tons annually.

• Lesotho Highlands Water Project

The NDB will provide a project loan of ZAR 3.2 billion (approx. USD 220 mln) to Trans-Caledon Tunnel Authority (TCTA) for the implementation of Phase II of Lesotho Highlands Water Project and financing the construction of water transfer infrastructure to the benefit of South Africa. The project will augment the water supply in the Vaal River Basin, home to South Africa's most economically important province, Gauteng. Three other provinces (the North-West, Mpumalanga and Free State provinces) will also directly benefit from an increased water supply. The project will support economic growth and foster sustainable livelihoods of people by increasing the yield of the Vaal River System by almost 15% in the long run, thus reducing water usage restrictions.

Background Information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB's General Strategy, sustainable infrastructure development is at the core of the Bank's operational strategy for 2017-2021. In August 2018, the Bank received AA+ long-term issuer credit ratings from S&P and Fitch.

China
Source: www.ndb.int

On 1 April 2019, New Development Bank (NDB) and Development Bank of Southern Africa (DBSA) signed the Loan Agreement for Greenhouse Gas Emissions Reduction and Energy Sector Development Project. Under the Agreement, the NDB will provide a loan without a sovereign guarantee to the national financial intermediary DBSA with an amount of up to USD 300 million.

The Loan Agreement was signed by Mr. Xian Zhu, NDB VP & COO and Mr. Patrick Dlamini, DBSA CEO during the 4th Annual Meeting of the New Development Bank in Cape Town, South Africa.

The Greenhouse Gas Emissions Reduction and Energy Sector Development Project is designed to support renewable energy projects in South Africa and help the economy to shift to a more sustainable energy path through structural transformation of the energy sector with emerging renewable technologies.

The objective of the Project is to facilitate investments in renewable energy that will contribute to the power generation mix and reduction in carbon dioxide (CO2) emissions in South Africa, in line with the South African Government's Integrated Resource Plan 2010 and its target of reducing greenhouse gas emissions as articulated in the National Development Plan 2030.

The loan will be in the form of a two-step loan of up to USD 300 million to DBSA, which in turn will be on-lent to the DBSA's identified subprojects, within particularly the wind, solar, and biomass energy sectors.

The project will bring significant developmental impacts through the subprojects, particularly related to environmental and social benefits from the reduction in carbon dioxide emissions, increase in generation capacity from renewable energy sources, and increase in the efficiency of the energy sector in South Africa. The project is also expected to contribute to unlocking private sector investment, and increasing the availability of long-term funds for projects in the energy sector in the country.

Background information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB's General Strategy, sustainable infrastructure development is at the core of the Bank's operational strategy for 2017-2021. In August 2018, the Bank received AA+ long-term issuer credit ratings from S&P and Fitch.

The DBSA is a development finance institution wholly owned by the Government of South Africa, with a mandate to finance sustainable infrastructure development within South Africa as well as the rest of the continent of Africa and its oceanic islands. In addition to municipal infrastructure within the borders of South Africa, the core focus of the Bank is in the energy, water, ICT, and transportation sectors, with a secondary emphasis on the health and education sectors. The Bank's products suite stretches across the infrastructure value chain, from project preparation, through the financing cycle, and ultimately, project implementation, operation, and maintenance. Climate mitigation and sustainability generally are key to the DBSA strategy in respect of all its focus areas.

China
Source: www.ndb.int

On 1 April 2019, New Development Bank (NDB) and ESKOM Holdings SOC Limited (Eskom) signed the Loan Agreement for Renewable Energy Integration and Transmission Augmentation Project. Under the Agreement, the NDB will provide a loan with sovereign guarantee to Eskom with an amount of USD 180 million.

The Loan Agreement was signed by Mr. Xian Zhu, NDB Vice President and Chief Operations Officer (COO) and Mr. Calib Cassim, Chief Financial Officer (CFO) of Eskom during the 4th Annual Meeting of the New Development Bank in Cape Town, South Africa.

The New Development Bank's Project Finance Facility (PFF) will be used to support the development of grid connection infrastructure, which is vital for the development of renewable energy projects. The PFF will also support renewable energy development and reduce the country's reliance on fossil fuels.

The project will integrate a total of 670 MW of renewable energy into the Eskom's grid. Modern grid connection infrastructure will be used for renewable energy projects and augmentation of the Eskom transmission network to the identified areas. The project will also help increase electricity supply to the targeted areas for sustainable development.

The project will enhance the country's capacity for renewable energy while achieving sustainable growth. It also aligns with the Bank's focus to support projects that aim at developing renewable energy sources.

Mr. Xian Zhu, COO of the NDB said, "we are happy to support this important project that will contribute to the development of grid connection infrastructure in South Africa and support the shift to a more sustainable energy path in the country. The project is coherent with the Bank's focus on projects that incorporate sustainability from their inception. Moreover, we believe that supporting South Africa's energy sector is fully in line with the Bank's mandate and our role as a reliable development partner."

Mr. Calib Cassim, CFO of Eskom said, "the successful conclusion of this inaugural transaction with NDB will significantly contribute towards driving Eskom's goals to reduce South Africa's CO2 emissions. Eskom welcomes the support from NDB and we look forward to fostering a valuable partnership with this organization whose mission is to enhance infrastructure for sustainable development in its member countries."
About New Development Bank

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB's General Strategy, sustainable infrastructure development is at the core of the Bank's operational strategy for 2017-2021. In August 2018, the Bank received AA+ long-term issuer credit ratings from S&P and Fitch.

About Eskom

Eskom is South Africa's electricity public utility. The utility is the largest producer of electricity in Africa, is among the top seven utilities in the world in terms of generation capacity and among the top nine in terms of sales. The company is divided into Generation, Transmission and Distribution divisions and together Eskom generates approximately 95% of electricity used in South Africa. Click here to find out more about Eskom.

South Africa
Source: www.sanews.gov.za

The preferential trade agreement between the Southern African Customs Unions (SACU) and the Southern Common Market (Mercosur) trade blocs has led to a steady increase of South African exports into Brazil.

This is according to the South African Foreign Economic Representative in Brazil, Shanaaz Ebrahim.

Speaking at the 12th Latin American Defence and Security Exhibition (LAAD) currently underway in Brazil, Ebrahim said that South African exports to Brazil for the year 2016/17 rose to $43 million, and 2017/18 they further increased to $183 million.

South Africa is one of the member countries of the SACU.

"According to trade statistics, our trade deficit with Brazil has shrunk considerably in 2018. The deficit is now at $700 million down from $1.2 billion in 2017. This is thanks to the fact that we have increased our exports to Brazil by 37% from $483 million in 2017 to $663 million in 2018.

"Part of this was due to the ratification of the SACU/MERCOSUR preferential trade agreement which was ratified in April 2016 where SACU had offered MERCOSUR tariff line items of about 1065 product lines across 16 sectors of which 469 products are zero percent import duty free," she said on Thursday.

Mercosur reciprocated this agreement by offering SACU 1052 product lines of which 778 products were at 0% import duty free.

"This offers us a window of opportunity to penetrate the Brazilian market through these zero percent import duty free products. Negotiations of this agreement started in 2000," said Ebrahim.

Ebrahim's comments come as a delegation of South African companies are participating in the LAAD through the Department of Trade and Industry's (dti) Export Market Investment Assistance Scheme (EMIA).

The scheme aims to increase exports of South African manufactured products.

The dti is hosting a pavilion at the fair where 21 companies are showcasing South Africa's industrial capabilities with the eventual intention of securing trade leads and business opportunities.

The purpose of the agreement is to integrate the economies of member countries through gradual and reciprocal liberalisation of trade and the strengthening of economic co-operation ties among member countries.

South African exports to Brazil for the year 2016/17 rose to $43 million, and 2017/18 they further increased to $183 million.

"This offers us a window of opportunity to penetrate the Brazilian market through these zero percent import duty free products. Negotiations of this agreement started in 2000," she said.

Both South Africa's and Brazil's membership to the BRICS multinational agreements was advantageous to both countries.

"This year Brazil will be chairing the 11th BRICS Summit which will be held in November, so there is going to be a series of working groups and meetings during the course of this year and we are looking forward to those agreements," Ebrahim said.

She urged South African companies to familiarise themselves with the Brazilian market.

"I would also urge our companies to interrogate and familiarise themselves with the list of 0% import duty free products as that will orientate them on the viability of their products within the Brazilian market and it would also stand them in best position to draw instant benefits resulting from the SACU/MERCOSUR preferential trade agreement."

LAAD is a leading Latin America and Security event that gathers international and national companies that provides technologies, equipment and services for armed forces, special forces, police, homeland security and security managers from large companies, service concessionaires and critical infrastructure.

Meanwhile, Chief Executive Officer of black women-owned Floida Engineering Services (FES), Florence Musengi said the exhibition platform falls in line with her company's strategic objectives of securing partnership opportunities in Brazil and the rest of the Mercosur trade bloc.

Floida Engineering Services is showcasing its flagship Short-Range Surveillance Radar system (SRSR) at the LAAD exhibition in Rio de Janeiro, Brazil.

The company, which was established in 2015, is a multi-disciplinary engineering services company geared towards the provision of innovative solutions for the aerospace and defence industries.

"We were proud to showcase the development progress of our flagship product at LAAD since it was only in the concept stages when we here two years ago. The Latin American defence market is robust; the technology and operational requirements are typically advanced, so acquiring a customer in this market is critical," said Musengi.

LAAD which started in the capital of Rio de Janeiro on Tuesday concludes on Friday. - SAnews.gov.za

South Africa
Source: www.sanews.gov.za

Local companies are keen to profile South Africa's industrial capabilities at the 12th Latin American Defence and Security Exhibition (LAAD), which is currently underway in Brazil.

South African companies are participating in the fair through the Department of Trade and Industry's (dti) Export Market Investment Assistance Scheme (EMIA). The scheme aims to increase exports of South African manufactured products.

LAAD. which started in the capital of Rio de Janeiro on Tuesday, is a leading Latin America Defence and Security event.

The exhibition gathers international and national companies that provide technologies, equipment and services for armed forces, special forces, police, homeland security and security managers from large companies, service concessionaires and critical infrastructure.

South Africa's offerings comprise textiles, body armour manufacturers, radar and communication systems, search and rescue boats and small to medium range arms.

South African Consul General in Brazil Malose Mogale commended the efforts undertaken by the dti in bringing the diverse crop of companies into the South American region and emphasised the strategic importance of Brazil to South Africa.

"Brazil remains a strategic partner for us in this region and the LAAD platforms offers us potential opportunities not only in this country, but within The Mercado Comun del Sur or the Southern Common Market economic and commercial group, which Brazil is a member of," said Mogale.

He said companies looking to explore Brazil should not neglect the important aspect of conducting due diligence on companies that they are looking to explore partnerships or transactions with.

"As the mission our primary aim is to urge South African companies to guard against compromising their intellectual property. We have noticed that this is one aspect of conducting business that is generally neglected and we request that they approach the mission to confirm the authenticity of companies they are engaging with as we have a database of companies that we update regularly," he said.

The Consul-General urged local companies to ensure that certain aspect of their production should remain local as that will be beneficial to job creation and growing the economy of the country.

The exhibition will conclude on Friday.

Meanwhile, the South African chapter of the Brazil, Russia, India, China and South Africa (BRICS) Business Council will host the group's mid-term meeting in Johannesburg that gets underway on Wednesday.

The meeting will also mark the handing over of the rotating chair of the Council to Brazil.

The two-day meeting will be held under the theme BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution. – SAnews.gov.za

Saudi Arabia
Source: saudigazette.com.sa

HYDERABAD, India — Prime ministers and presidents of over 30 nations are expected to visit the southern Indian city of Hyderabad to participate in an international peace conference being organized by Indo Arab Friendship Forum.

This was announced by Jaber Patel, the president of the forum while he was addressing the media upon receiving the BRICS award. The award was presented by the BRICS Global Forum at Media Plus Auditorium in the city on Sunday evening in recognition of Patel's services to strengthen Indo Arab ties.

Addressing the media, Patel said, "An international peace conference will be held in Hyderabad and leaders of many nations are invited."

Indian President Ramnath Kovind is expected to inaugurate the two-day international conference, he said. At least 30 leaders will be participating in this conference for peace, humanity and brotherhood, he said.

Mr. Patel, who heads the India Arab Friendship Forum, said, "His aim is to strengthen bilateral trade and friendship between countries. Governments interact at the diplomatic level, but to strengthen ties, friendship is required, and his work will be focused on strengthening bilateral relations by promoting friendship between these nations.

Speaking on the occasion, Vice President of BRICS Global Forum in Russia Sergey Fokin lauded the Hyderabadi hospitality. He stressed on promoting cultural diplomacy and trade with love, peace and humanity.

Speaking on the occasion, Mr. Abdul Basith, vice president of the International Diplomatic Club who traveled from London to present the award, said countries that do not use dollars for trade can rely on barter system for a common medium of trade.

Tobius, a renewable energy specialist from Germany who was part of the visiting delegation that presented the award, said his renewable energy project, particularly the desalination of water project that uses solar panels is a multi-million dollar project that will benefit BRICS members. He said he will be in INDIA to support discussion of this project among BRICS members.

Renonwed artist and art curator Ms Dariyar, said art can be used to promote trade. Art is a language which is understandable everywhere in the world. India is doing a 200$b business every year with arab countires.

Jabel Patel announced that "a political and media delegation will be taken to Russia to further strengthen ties between India and Russia to meet Russian President Vladimir Putin." — SG

South Africa
Source: engineeringnews.co.za

Nobel laureate Paul Romer on Monday described South Africa as an "economic disappointment", citing the high levels of unemployment among the country's youth, calling it a "human catastrophe".

"It's a very hard story because there was this political miracle in this country which was then followed by economic disappointment and the thing I would point to is not so much the outsiders, but the under-utilisation of human talent in South Afria," Romer said.

He was part of a panel discussion in Cape Town at the fourth annual meeting of New Development Bank (NDB).

The NDB is a multilateral finance institution established by the BRICS bloc of countries - Brazil, Russia, India, China and South Africa.

Romer told delegates South Africa should not wait for educational reform but should rather get more people into jobs. "To have such extraordinary high unemployment levels especially among young people ... this is just a catastrophe for the future of this country," he said.

"Wages grow with years on the job, people learn on the job so a system that denies people a chance to have a job ... this is just a waste of human talent and its just a crushing mistake for the people involved."

Romer was a co-recipient of the 2018 Nobel memorial prize in economic sciences and was also at one stage a chief economist at the World Bank.

South Africa
Source: www.sanews.gov.za

The South African government has handed over the chairship of the BRICS Business Council (BBC) following 12 successful months at the helm.

Speaking at the conclusion of a two-day mid-term BBC meeting in Johannesburg, International Relations and Cooperation Minister Lindiwe Sisulu, said South Africa welcomed the assurance from Brazil that the new government is committed to BRICS and continuing the relationship.

BRICS is an acronym for the powerful grouping of the world's leading emerging economies, namely Brazil, Russia, India, China and South Africa.

Sisulu assured the BBC of the country's support as it navigates its way around the continent.

"South Africa will chair the African Union (AU) in 2020 to usher in the Africa Continental Free Trade Area. A vibrant and energetic Council is a very necessary partner for this.

"Yesterday, the 22nd country signed the Africa Continental Free Trade Area, meeting the minimum threshold for the agreement to come into effect. It bodes well for Africa, for SA and for the Business Council as it opens up Africa for new business opportunities."

Sisulu said she was encouraged by the "exuberance" of the meeting.

"I hope you enjoyed your stay and hope you stay a little longer. We need you here for the long haul. The BRICS Family is a very important one to us and we'd like you make sure that you give the necessary underpinnings of this very important association," Sisulu said.

Businessperson Busi Mabuza, who chaired the council for the past 12 months, said the South African council was confidentBrazil would take the BBC to greater heights. Mabuza served in the council with Ayanda Ntsaluba, Bridgette Radebe, Stavros Nicolaou and Elias Monage.

She highlighted the inroads made in the enhancement of the relationship between the New Development Bank and the BBC, which she said was strengthened in the past year.

"We have started seeing the fruits of that on the ground in South Africa and we are very pleased. The Energy Dialogue that was held in November last year was a proud moment for us. We were pleased with the outcomes of the skills challenge and I believe it is the reason our colleagues in the Skills Development Working Group continue to advocate for us to continue with it," she said.

Over the past year, she said the BBC has discussed infrastructure work that is being done.

"We are most excited about the opportunity that is often around maritime activities and we'd request that Brazil picks up on this issue," she said.

Mabuza expressed gratitude for the support received from Sisulu and Trade and Industry Minister Rob Davies and President Cyril Ramaphosa.

Incoming chairperson José Serrador said his country recognised the excellent work done by its predecessors, "especially South Africa, for the strict cooperation in the process of handing over the chairpersonship".

"We encourage the debate of measures that will make the demands of the Business Council more efficient and more civil. We would like to emphasise the voice of the private sector with our governments. We count on all national sections to reach this goal," he said.

Initially, Serrador said, Brazil would propose three main issues for debate in 2019 - investment facilitation, trade facilitation and innovation and digital economy.

"The presentations of the working groups show these topics are already a part of our discussions, many of which have been very robust, and proposals that will be highlighted in our recommendations to our Heads of State in the 2019 summit."

Serrador announced that this year's BRICS Summit will be on November 13 and 14 in Brasilia, under theme "Economic growth and innovative future". – SAnews.gov.za