The China-based New Development Bank (NDB) has loaned South Africa US$1 billion to help the recession- and coronavirus-hit economy sail through its current troubled economic waters, the presidency announced here on Sunday.The NDB established a $10-billion emergency assistance facility in April last year to assist BRICS nations during the pandemic, the bank disclosed.
According to the office of South African President Cyril Ramaphosa, the loan to Pretoria would help the country finance its employment creation programmes that are currently underway as part of the country’s economic recovery plan.
The funding is expected to assist the first phase of the Presidential Employment Stimulus, which is aimed at creating some 700,000 jobs in the public sector, the high office said.
The NDP funding is also expected to assist in putting in place protection measures for people who temporarily lost their jobs during the pandemic, the office said.
BRICS members are Brazil, Russia, India, China and South Africa.
They own the Shanghai-based NDB, which was set up to offer alternative financial funding to the World Bank in dispersing affordable loans to member states.