BRICS to Launch $10B Guarantee Fund—New Development Bank to Power Investment Surge in Member States

In a bold move to catalyze infrastructure and sustainable development, BRICS nations are set to launch a multibillion-dollar Guarantee Fund, backed by the New Development Bank (NDB), to de-risk private and public investments across member states. The initiative, expected to be unveiled at the upcoming BRICS+ Summit, aims to channel $10 billion in guarantees toward high-impact projects in sectors like clean energy, logistics, digital infrastructure, and agritech.

 

The fund will operate under the ‘Buy BRICS’ framework, prioritizing local sourcing and intra-BRICS trade. It will also support credit enhancement, enabling member countries to attract institutional investors and sovereign wealth funds. The NDB, headquartered in Shanghai and currently led by Dilma Rousseff, will administer the fund in collaboration with national development banks and private partners.

 

This marks a strategic shift from traditional lending to risk-sharing instruments, aligning with BRICS’ broader push for financial sovereignty and South-South cooperation. The fund is also expected to unlock SME financing, particularly in Africa and Latin America.

 

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Source: Economic Times – Laying BRICS for Highrise Growth