BRICS to formally discuss founding development bank

DURBAN - The BRICS nations have agreed to enter into negotiations on the establishment of a development bank to finance infrastructural development in their countries, South African President Jacob Zuma announced on Wednesday.

"In terms of our earlier deliberations, we have decided to enter formal negotiations to establish a BRICS-led development bank based on our own needs, considerable infrastructure needs which amount to around $4.5 trillion over the next five years," he said at a plenary session for the BRICS leaders.

The bank will also be used to cooperate with other emerging markets and other developing nations.

Zuma said the leaders' resolve was also to agree to establish a BRICS contingency reserve arrangement, adding that the launch of the BRICS Business Council earlier in the morning strengthened intra-BRICS cooperation.

BRICS had also launched a think-tank to assist with innovations, while the 5th BRICS Academic Forum recognized the role of academics in fostering dialogue.

The South African President added that there was need for emerging countries to enjoy the fruits of their resource endowments by shifting from primary to industrial development and thus beneficiate their goods.

South Africa was also keen to learn from the experiences of others and wanted to upgrade about 3.2 million youths into formal employment while enhancing skills development.