BRICS Development Bank to Rival World Bank

BRICS leaders including Brazil, Russia, India, China and South Africa

As BRICS Leaders prepare to meet in Durban, South Africa this Tuesday for the fifth summit of the BRICS bloc of emerging economies – Brazil, Russia, India, China and South Africa, a groundbreaking economic statement is expected.

The bloc is set to launch a joint development bank that will change the global money game and rival the western-dominated World Bank and the International Monetary Fund (IMF).

Details on how the bank will work remain scanty but diplomats point out that it could start with US$10 billion seed money from each country.

African countries being factored in for development and financial support is crucial as a shift in the global balance of economic and political power is led by the world's second largest economy, China.

China's new president Xi Jinping wrapped up his state visit to Russia and left Moscow for Dar es Salaam on Sunday starting a three-country tour of Africa that will culminate at the summit which expects 5,000 delegates.  

As Africa’s largest trading partner and Kenya’s second largest trading partner, Sino-Kenyan relations have continued to grow strong each day with Kenya positioning itself to be a regional economic powerhouse and gateway to East and Central Africa.

Currently Intra-BRICS trade stands at US$300 billion and their is a huge prospect for growth.

What does Africa stand to gain? Saliem Fakir of The South African Civil Society Information Service writes -- BRICS not only opens new markets and helps with some of our development backlogs; it also promises fortunes for those who have benefited from past cosy deals and relations with Anglo-Saxon capital, but are now seeking new pastures as old capital becomes either too stingy or sticky with their money.