- South Africa aims to learn from India’s rural electrification and renewable energy successes to address its development challenges.
- The New Development Bank committed up to USD 1 billion for South Africa’s water and sanitation infrastructure, supporting essential services for poor households.
Deputy President Paul Mashatile emphasised South Africa’s interest in learning from India’s rural electrification and renewable energy successes. Speaking at the New Development Bank’s (NDB) ninth annual board of governors meeting in Cape Town last week, Mashatile underscored the value of these lessons for South Africa.
The meeting included partners from the BRICS nations—Brazil, Russia, India, China, and South Africa. Mashatile praised India’s progress in rural electrification and renewable energy integration. He also highlighted China’s rapid renewable energy growth and grid modernisation, Brazil’s expertise in hydroelectric and bioenergy, and Russia’s knowledge in managing large transmission networks and nuclear energy.
The Deputy President also emphasised the importance of sustainable energy for the proposed new cities’ buildings, which aim to combat poverty. He warned that high energy consumption and dependence on fossil fuels make cities vulnerable and inefficient. He urged a shift to reliable, affordable, and renewable energy sources.
The NDB has been a critical partner in supporting South Africa’s infrastructure projects. Mashatile expressed gratitude for the bank’s USD 5.6 billion loans over the past eight years. He mentioned the recent approval of USD 2.3 billion for ten renewable energy projects. These projects aim to install 2.8 GW of generation capacity and cut over 4 million tonnes of CO2 emissions annually.
Following the meeting, the NDB announced a loan of up to USD 1 billion for South Africa’s water and sanitation infrastructure. The funds will support the Municipal Infrastructure Grant (MIG) to address infrastructure backlogs and provide essential services to poor households. The NDB noted that this loan aligns with its strategy to ensure universal access to clean water and adequate sanitation while promoting sustainable water management.
Mashatile reiterated the importance of investing in new cities. He pointed to lessons from BRICS partners to address urbanisation, migration, climate change, poverty, unemployment, and pandemics. He committed to working closely with the NDB to achieve these goals.
The New Development Bank, founded in 2015 by BRICS nations, focuses on funding infrastructure and sustainable development in emerging markets. In 2021, the bank expanded its membership to include Bangladesh, Egypt, the UAE, and Uruguay.