By Kestér Kenn Klomegâh

On the sidelines of the St Petersburg International Economic Forum (SPIEF), Russian President Vladimir Putin has held a working discussion with Dilma Rousseff, President of the New Development Bank (NDB) established by BRICS countries. According to official reports made available by the Kremlin, Putin urged the bank to consider seriously the adoption of new financial payment systems and the possibility of settlements in national currencies.

“There are issues that require special attention. I mean the expansion of the possibility of settlements in national currencies, and further joint efforts to create a digital platform for settlements and investments,” Putin stressed in his comments at the meeting, and reminded that this question was thoroughly discussed at the last summit of BRICS leaders in Kazan, Tatarstan.

While congratulating her re-election to the position of the head of the New Development Bank, which implies that all members of the bank highly appreciated her work, Putin further underlined that currently the New Development Bank (NDB) has approved and financed approximately 120 projects worth US$39 billion.

In her brief response, Dilma Rousseff, President of the New Development Bank (NDB), informed and confirmed the fact that the Russian Federation proposed her candidacy for re-election as the NBR president. “For my part, I will do everything possible and make every effort to fulfil my duties in this post as best as possible,” Rousseff told Putin in the presence of the Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin, Finance Minister Anton Siluanov, and Central Bank Governor Elvira Nabiullina.

Established in 2015 by the BRICS leaders, the New Development Bank (NDB) has since faced multitude of challenges, especially now with geopolitical changes and emerging economic hurdles. “Of course, we face a number of challenges. These are mutual settlements in national currencies, as well as the creation of digital platforms for the implementation of mutual settlements, including in local currencies. Currently, there are various mechanisms that make it possible to tokenize mutual settlements,” explained Dilma Rousseff, President of the New Development Bank.

Rousseff, in addition, referred to the second very important issue, including the expansion of member countries of the international development bank, as well as the addition of new members partners of the bank. Two countries have already been selected as new members: Uzbekistan and Colombia. And two more countries are still under consideration: Ethiopia and Indonesia.

According to media reports, other multilateral development institutions, including the World Bank, have expressed an intention to work together with the NDB. In September 2016, NDB and World Bank Group signed a memorandum of understanding on cooperation and it was announced that the NDB and WBG’s cooperative efforts focusing primarily on infrastructure development in BRICS member countries.

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS (Brazil, Russia, India, China, and South Africa). According to the agreement on the NDB, “the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.” Moreover, the NDB “shall cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the bank.”

In May 2022, the New Development Bank set up a regional office in India in the state of Gujarat with the goal of financing and observing infrastructure projects in both India and Bangladesh. In May 2023, Saudi Arabia expressed its intention to join the NDB. The bank is headquartered in Shanghai, China. The first regional office of the bank was opened in Johannesburg, South Africa in 2016. Subsequently, regional offices were established in São Paulo in Brazil, Ahmedabad in India and Moscow in the Russian Federation.

By Aduragbemi Omiyale

A special fund to mobilise $250 million in investment in the next three year for cheap, clean energy in Africa has been launched by Octopus Energy.

Called the Octopus Energy Power Africa Fund (OEPA), this initiative opens the door for investors to support renewable projects Africa, which is home to nearly 40 per cent of the world’s renewable potential.

The fund, launched at the Africa Energy Forum in Cape Town, South Africa, with $60 million already realized, will unlock funding that catalyses the continent’s huge clean energy potential, bringing together forward-thinking investors to power communities and businesses with affordable, homegrown, green energy.

Starting with projects across Sub-Saharan Africa, OEPA plans to invest in game-changing clean energy solutions – from rooftop solar and battery storage to electric vehicle charging infrastructure and grid upgrades.

As part of the move, Octopus Energy Generation is also working with African investment specialist Pembani Remgro Infrastructure Managers (PRIM) to create a smart, practical model that opens new doors for green investments in emerging markets.

“Africa is abundant with clean energy potential – enough to build the next-generation renewable powerhouse and a greener, fairer future fuelled by sunshine and wind.

“By partnering with local experts, such as Pembani Remgro Infrastructure Managers, we aim to accelerate that future and create new green pathways,” the chief executive of Octopus Energy Generation, Zoisa North-Bond, stated.

The Director of the Octopus Energy Power Africa Fund, Ashleigh Gray, said, “With the Octopus Energy Power Africa Fund, we’re offering a new gateway into a region where demand is soaring. This is an incredible opportunity for forward-thinking investors to support transformative clean energy projects and grow with one of the world’s most exciting markets.”

Also, the chief executive of Pembani Remgro Infrastructure Managers, Herc van Wyk, said, “There is a growing awareness of the opportunity presented by infrastructure investment in Africa and we look forward to collaborating with Octopus to unlock new sources of capital for clean energy solutions in Sub-Saharan Africa.”

The launch of OEPA is the next step in Octopus Energy’s mission to bring affordable, green energy to more people globally, and comes hot off the heels of its investment in MOPO – a solar battery innovator powering off-grid homes and businesses to accelerate clean energy access across Africa.

The fund also builds on the company’s partnership with Akuna Group to deliver Sierra Leone’s first-ever wind farm on Sherbro Island, bringing clean, reliable power to local homes and businesses to a region long underserved by traditional grids.

By Adedapo Adesanya

The African Credit Rating Agency (AfCRA), which was formed to provide accurate ratings for countries on the continent, will officially be launched in the third quarter of the year.

The continental initiative will provide alternative assessments of repayment risks, after several African leaders and lenders, lamented the unfair ratings by other established ratings firms like Fitch, Moody’s and S&P Ratings.

According to African Peer Review Mechanism (APRM), a body established by the African Union (AU) to do the groundwork for the launch of the agency, AfCRA plans to start operations by the end of September 2025.

The agency will publish its first sovereign rating report by the end of the year or early 2026, said Mr Misheck Mutize, lead expert on credit-rating companies at APRM.

It will appoint a chief executive next quarter, and candidates have already been shortlisted.

The new company will focus on local-currency debt ratings to help support the development of domestic capital markets and reduce foreign currency risk on the continent.

African leaders, including President Ruto of Kenya and former Senegalese President, Mr Macku Sall have accused the foreign ratings companies of bias and a lack of transparency.

Recently, Ghana and Zambia, have also lambasted these agencies for their ratings.

The AfCRA will seek to address that issue by having a presence on the continent, although it has raised worries about how objective and accurate the ratings will be.

“This was designed to maintain independence and avoid conflict of interest,” Mr Mutize clarified, as per Bloomberg, adding that “Shareholding will mainly be African private-sector driven entities.”

The call for AfCRA was heightened after Fitch downgraded the Cairo-based Africa Export-Import Bank (Afreximbank) credit rating to BBB-, one notch above junk ratings, from BBB, citing high credit risks and weak risk management policies.

Fitch calculated that the ratio of Afreximbank’s non-performing loans (NPLs) exceeded the 6 per cent high-risk threshold outlined in the ratings agency’s criteria.

For Afreximbank, it said in its first quarter operating results ending March 31, the NPLs ratio stood at 2.44 per cent.

APRM in response said the rating was based on a “flawed” categorisation of loans and calling for the decision to be reconsidered.

Mr Mutize also stressed that that the company won’t shy away from downgrades where warranted.

“It is important to debunk the assumption that AfCRA is being established to give favorable ratings to Africa — no,” he said to Bloomberg.