Johannesburg - The government was going to use R2 billion from the sale of Vodacom shares for South Africa’s initial capital contribution to the New Development Bank (NDB), Finance Minister Nhlanhla Nene said yesterday.
Nene said the share sale was expected to yield total receipts of R25.4bn, of which R23bn had already been provided to recapitalise Eskom.
He said the R2bn was South Africa’s first contribution to the NDB.
“We will shortly respond to the NBD’s opening invitation for project proposals,” Nene announced in his mini budget speech.
“A special appropriation will be tabled this year to provide for the first tranche of our capital commitment to the NDB,” he added.
He said that the purpose of the NDB was to mobilise resources for infrastructure and sustainable development projects in Brics (Brazil, Russia, India, China and South Africa) 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 $10bn (R135bn) and equal voting power,” he added.
“Subscribed capital is made up of 20 percent of paid-in capital and 80 percent of callable capital. In time the bank will be open to all members of the UN,” Nene said.
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