The South African government plans to use R2 billion from the sale of its shares in Vodacom as the initial capital contribution to the New Development Bank.
This was revealed in the Medium-Term Budget Policy Statement, which says subscribed capital for the new bank is made up of 20% paid-in capital and 80% callable capital.
Finance minister Nhlanhla Nene said the R2 billion is a special appropriation and SA's first instalment into the New Development Bank before next year's budget.
Earlier this year, the South African government announced it would sell its share in the country's largest mobile operator, Vodacom. At the time, government only noted Eskom as one of the organisations that will receive funds from the sale.
"The share sale is expected to yield total receipts of R25.4 billion, of which R23 billion has been provided to recapitalise Eskom," says National Treasury.
According to Treasury, the New Development Bank will mobilise resources for infrastructure and sustainable development projects in Brazil, Russia, India, China, South Africa (BRICS) and other developing countries.
The bank's headquarters are in Shanghai and the first regional office will be established in Johannesburg.
Initially, BRICS countries will be the only members, each with a shareholding of $10 billion and equal voting power. In time, the bank will be open to all members of the United Nations.
Share