Zimbabwe Targets Full BRICS Membership As Country Secures Entry Into US$100 Billion Development Bank

Zimbabwe is taking steps to deepen its economic ties with BRICS countries, having secured admission to the bloc’s New Development Bank (NDB) as a borrowing member while preparing to pursue full membership of the wider grouping.

The development could open another avenue for the country to secure long-term financing for infrastructure and economic development at a time when its access to affordable loans from traditional international lenders remains restricted by outstanding debt.

Foreign Affairs and International Trade Minister Professor Amon Murwira disclosed the progress in the Senate recently while responding to questions about Zimbabwe’s prospects of accessing concessional funding from international financial institutions.

He said preparations were underway for Zimbabwe to formally submit its instruments of accession in Brazil as it pursues full membership of BRICS.

Also Read: Zimbabwe Begins Formal Bid to Join BRICS Bloc

Zimbabwe Secures Entry Into BRICS Development Bank

According to The Herald, Murwira attributed the progress to President Emmerson Mnangagwa’s engagement and re-engagement policy, which has sought to strengthen Zimbabwe’s relationships with international partners and financial institutions.

The minister stressed the importance of integrating Zimbabwe into the global financial system, pointing to the country’s ongoing efforts to resolve its debt challenges and improve transparency in its dealings with creditors.

He said securing membership of the NDB marked progress in those efforts, giving Zimbabwe an opportunity to access financing from an institution established outside the traditional Western-dominated financial system.

The NDB was established in 2015 by Brazil, Russia, India, China and South Africa to finance infrastructure and sustainable development initiatives in emerging economies.

It has an authorised capital of US$100 billion, with US$50 billion initially subscribed by its members.

The bank has approved more than US$30 billion in financing for over 80 projects covering areas such as renewable energy, transport infrastructure and water development.

Why The Development Matters For Zimbabwe

Economist Professor Gift Mugano said Zimbabwe’s admission to the NDB could help address some of the country’s longstanding financing challenges.

He described the institution as an important alternative to traditional multilateral lenders, particularly the International Monetary Fund (IMF) and World Bank, from which Zimbabwe has struggled to secure fresh concessional financing.

Zimbabwe’s outstanding external debt has complicated its efforts to access long-term, low-interest loans from international financial institutions. The country’s total debt obligations to multilateral creditors remain a significant obstacle to restoring normal lending relations.

Mugano argued that expecting Zimbabwe to settle its entire debt burden before receiving fresh financing creates a difficult situation, as access to new capital could help generate the economic activity and revenue needed to repay existing obligations.

“You are aware that through ZDERA, the World Bank and IMF were abused by the Americans to prevent offshore lines of credit to Zimbabwe,” he said.

Although the United States’ Zimbabwe Democracy and Economic Recovery Act (ZDERA) was repealed, Mugano said its impact continued to influence Zimbabwe’s relationship with Western-backed financial institutions.

The legislation had required US representatives at international financial institutions to oppose certain forms of lending and debt relief to Zimbabwe unless specified conditions were met.

US$10 Billion Debt Burden Complicates Access To Loans

Mugano also questioned the requirement for Zimbabwe to clear its outstanding multilateral obligations, estimated at approximately US$10 billion, before it can fully restore access to new concessional financing.

He argued that fresh funding could help the country expand production, build infrastructure, increase exports and reduce dependence on imports.

According to the economist, these improvements would strengthen government revenue collection and create greater capacity to service existing debts.

He further noted that Zimbabwe had introduced several economic recovery programmes, including the Transitional Stabilisation Programme and National Development Strategy 1, while also participating in IMF Staff-Monitored Programmes.

However, he said efforts to resolve the country’s debt challenges through traditional international financial institutions had progressed slowly.

BRICS Offers Alternative Financing Opportunities

Zimbabwe’s pursuit of full BRICS membership comes as the country seeks to broaden its sources of development financing and strengthen cooperation with emerging economies.

Mugano said membership of the bloc and its development bank could give Zimbabwe access to financing arrangements similar to those it already enjoys through African financial institutions and bilateral partnerships with countries such as China and partners in the Middle East.

Unlike the traditional Bretton Woods institutions, the NDB was designed around a governance structure that gives emerging economies a greater role in decision-making.

Its founding members initially held equal shareholding stakes, with each controlling approximately 18.72% of the voting power.

For Zimbabwe, deeper involvement in the BRICS financial architecture could provide additional opportunities to finance infrastructure projects and support economic growth while the country continues working towards resolving its longstanding debt problems.