New Development Bank consolidates strategic expansion and reinforces commitment to sustainable development in the Global South

Led by Dilma Rousseff, the NDB reaffirmed its role in advancing sustainable development in the Global South by announcing the accession of Colombia and Uzbekistan. With an equal-governance model and no political conditionalities, the Bank overcame financial challenges by raising $16.1 billion in 2024

By Leandro Molina / BRICS Brasil

At a time of sweeping transformation in the global economic landscape, the New Development Bank (NDB), chaired by Dilma Rousseff, reaffirmed its standing as an innovative financial institution. Speaking at the conclusion of the BRICS Bank’s Annual Meeting in Rio de Janeiro, President Rousseff outlined the institution’s recent progress —from the admission of new members to the overcoming of financial turbulence—always anchored in its core mission: promoting sustainable and sovereign development across the Global South.

The expansion of the Bank’s membership was a central focus of the presentation. Rousseff confirmed the approval of Colombia and Uzbekistan as the newest members of the NDB, a decision made by the Board of Governors, composed of the Finance Ministers of BRICS countries. With these additions, the Bank now counts 11 members, including its original founders (Brasil, Russia, India, China, and South Africa) and subsequent joiners (United Arab Emirates, Bangladesh, Egypt, and Algeria).

Rousseff also noted that other countries are currently under review for membership but did not disclose their names, citing internal Board guidelines aimed at preserving confidentiality in ongoing negotiations. “Our expansion will follow strategic criteria, always with the goal of strengthening our representativeness within the Global South,” she explained, making clear that the Bank remains open to qualified new members.

Focusing on the needs of the Global South

Governance was another key pillar of the president’s remarks. She drew a clear contrast between the NDB’s model and the traditional paradigms of institutions like the IMF and the World Bank. “Our Bank was established by the Global South for the Global South, with a governance structure based on substantive equality among members,” she emphasized. In this innovative model, there is no room for unilateral veto power: all member countries have an equal voice in strategic decisions, which are made by consensus or qualified majority.

One of the most salient features of the Bank’s governance is its rejection of political or economic conditionalities, breaking with practices often criticized in other multilateral financial institutions. “Our model is demand-driven. It is the member countries that define their development priorities, and we assess projects based on technical—not political—criteria,” Rousseff stressed, underscoring the Bank’s commitment to national sovereignty in all its operations.

Overcoming challenges

The financial report presented by Dilma did not conceal the challenges faced in recent years. Rousseff was candid in addressing a particularly challenging 15-month period when the NDB was unable to raise funds in international markets—a situation that tested the Bank’s liquidity and required bold corrective measures.

Since assuming leadership in March 2023, president Rousseff has spearheaded an aggressive campaign to resume bond issuances, successfully raising an impressive $16.1 billion in 2024 alone, at rates that reflect renewed market confidence. Noteworthy examples include renminbi-denominated bonds issued with a mere 0.24% spread above the benchmark rate, and dollar-denominated bonds with equally competitive margins, at around 0.65% above the swap rate—a key indicator of future interest rate expectations.

“Today we have strong credit ratings, including a AAA grade from the Japanese agency JCR, and we are expanding into new markets, such as yen-denominated instruments and the Middle East,” she said, signaling the NDB’s growing presence in the global financial ecosystem.

Investment strategy

The Bank’s project portfolio has now reached $40 billion in approved financing since its inception, encompassing 122 strategic initiatives, of which $22.4 billion has already been disbursed. In the case of Brasil specifically, investments total $2.3 billion, spanning sectors as diverse as logistics infrastructure, clean energy, and health system modernization.

The investment strategy follows four priority pillars aligned with the most pressing development challenges of the 21st century. Logistics infrastructure receives particular emphasis, with projects aimed at upgrading ports, airports, and railways—including feasibility studies for high-speed trains—as well as regional integration initiatives such as the bi-oceanic railway linking Brasil and Peru, still in bilateral discussion.

Digital transformation stands as the second strategic pillar, with funding directed toward the expansion of 5G networks, early groundwork for 6G, and the development of data centers to ensure member countries’ technological sovereignty. In the realm of social infrastructure, smart hospitals equipped with AI and telemedicine technologies are featured as flagship projects, alongside essential initiatives in basic sanitation and affordable housing.

Energy transition completes the list of investment priorities, with significant funding flowing into solar and wind energy projects—always accompanied by innovative solutions for battery storage. “Storing wind and sunlight was once mocked as a fantasy, but today it is one of the most strategic areas in the global energy sector,” Rousseff noted, alluding to past criticisms of her advocacy for these technologies.

"Storing wind and sunlight was once mocked as a fantasy, but today it is one of the most strategic areas in the global energy sector"
— DILMA ROUSSEFF, president of the New Development Bank

Local-currency financing warranted a dedicated section of her remarks. Dilma Rousseff highlighted the risks faced by emerging economies overly reliant on the U.S. dollar for external financing. “Any business or government that borrows in foreign currency becomes subject to decisions made by the Federal Reserve or other central banks in developed nations,” she cautioned.

As a concrete example of this alternative approach, she pointed to a project in Brasil funded directly in renminbi, without the need for dollar conversion. She also noted strategic partnerships with national development banks like BNDES and BRDE to structure operations with reduced exchange-rate risk. This policy aims to shield member countries from the volatility of strong currencies while strengthening domestic capital markets—fostering a more resilient financial ecosystem, less dependent on traditional centers of financial power.

Technological innovation emerged as a cross-cutting theme in Dilma’s address. The president made a forceful case for emerging economies to gain mastery over critical technologies such as artificial intelligence, biotechnology, and robotics—lest they become “passive consumers of platform capitalism.” The NDB, she said, positions itself as a strategic facilitator in this process, actively promoting knowledge-sharing among members.

She cited China’s expertise in electric vehicles and solar panels, India’s strengths in the digital economy, and Brasil’s leadership in biofuels and deepwater oil exploration as examples of complementary assets ripe for exchange. “We have a flagship smart hospital project in São Paulo that incorporates Chinese know-how in its design. That’s exactly the kind of South–South cooperation we want to foster,” Dilma said, illustrating how the Bank can function as a platform for technological collaboration among developing nations.

Looking ahead

Outlining the Bank’s strategic outlook, Dilma laid out four key priorities. First, the expansion of the membership base will proceed based on strategic criteria that bolster the Bank’s geographic and economic representativeness. Second, the mobilization of private capital will be intensified through innovative guarantee mechanisms aimed at reducing investor-perceived risk.

Third, partnerships with leading research institutions will be scaled up to accelerate the pace of technological innovation in member countries. And fourth, local-currency operations will remain an absolute priority as a means of building a more diverse, balanced international financial system.

Asked about the controversial topic of “de-dollarization,” Rousseff offered a cautious and analytical response. “I don’t see concrete evidence of an imminent decline in the dollar’s status as the world’s primary reserve currency. But the rise of initiatives to expand trade in local currencies is undeniable, and I see that as a positive development,” she said. This pragmatism has become a hallmark of the NDB under her leadership—a bank seeking tangible alternatives to vulnerabilities in the global financial system, without adopting purely ideological or oppositional stances.

Founded in 2014 by BRICS countries as an alternative to traditional financial models, the NDB is headquartered in Shanghai and operates with a clear mandate: sustainable development and respect for national sovereignty. With its latest announcements and a strategic plan firmly in place, the Bank continues to consolidate its position as a relevant actor on the international financial stage—offering a viable alternative that combines technical soundness with deep respect for the needs of developing nations.

English version: Tadeu Azevedo (POET/UFC)
Proofreading: Michel Emmanuel Félix François