‘Brics bank great for business’

Johannesburg - The formation of a new bank by BRICS countries to aid infrastructure development bodes well for business, logistics company DHL said on Wednesday.

“The fact that leaders of the BRICS countries have recognised these issues and are driving the decision, can only bode well for future business development and success in these nations,” DHL Express managing director in sub Saharan Africa Charles Brewer said in a statement.

(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, Chinese President Xi Jinping and South African President Jacob Zuma join their hands at a group photo session during the 6th BRICS summit in Fortaleza July 15, 2014. Leaders of these five countries are holding an annual summit in Brazil this week where they are expected to sign a deal creating a $100 billion development bank and a currency reserve fund of the same amount. Credit: Reuters

He said infrastructure development was key to South Africa's economic growth as it assisted in connecting regions, which would subsequently increase the economic activity within the country.

He said in the logistics business, the quality of infrastructure in a country could positively or negatively impact its economic performance.

“For instance, in many African countries, infrastructure is a major constraint on doing business. With underdeveloped road and rail networks, and some cities only being serviced by one flight per week, infrastructure and connectivity are among the most pressing problems limiting growth,” Brewer said.

BRICS countries - Brazil, Russia, India, China and South Africa - have agreed to start a New Development Bank, which is expected to be operational in 2016.

The bank would help fund infrastructure projects in developing countries. - Sapa