On May 19, 2022, the Board of Governors of the New Development Bank (NDB) approved the Bank’s General Strategy for 2022–2026 entitled “Scaling Up Development Finance for a Sustainable Future.” The General Strategy sets the course for NDB’s evolution into a leading provider of solutions for infrastructure and sustainable development, for emerging market economies and developing countries.
The General Strategy seeks to elevate NDB to a higher standard of operational excellence and strengthen the Bank’s development impact. To this end, the General Strategy targets enhancements in the Bank’s capacity to mobilise resources at scale, finance diversified types of projects, employ sophisticated instruments, maximise impact, and continue building a robust institutional profile.
Reflecting NDB’s primary aspirations for the 2022-2026 period, the General Strategy includes the following main targets for the Bank:
- Provide USD 30 billion in total volume of approved financing from its own balance sheet over 2022–2026;
- Extend 30% of total financing in local currencies over 2022–2026;
- Provide 30% of total financing to non-sovereign operations over 2022–2026;
- Co-finance 20% of projects (in numbers of projects) with partner MDBs over 2022–2026;
- Direct 40% of total approvals to projects contributing to climate change mitigation and adaptation, including energy transition, over 2022–2026; and
- Increase female representation to 40% of professional and managerial staff by 2026.
The General Strategy provides a sharper focus and orientation to the Bank’s work, while ensuring the effective delivery of its mandate. Within the broad spectrum of infrastructure and sustainable development, the Bank’s operations during the 2022–2026 period will focus on, but not be limited to, the following areas: clean energy and energy efficiency, transport infrastructure, water and sanitation, environmental protection, social infrastructure, digital infrastructure. Projects that are climate-smart, disaster-resilient, technology-integrated and inclusive will be prioritised by NDB for financing.
Over the 2022–2026 strategy cycle, the Bank intends to deploy USD 30 billion from its balance sheet through loans, equity investments, and other tailored instruments. This will bring NDB’s cumulative project approvals to around USD 60 billion by the end of the second strategy cycle.
“As the New Development Bank enters into the 2022–2026 strategy cycle, our mandate is more relevant than ever. We are fully committed to positioning it as a premier development bank for emerging economies. Our duty is to maximise development impact,” said Mr. Marcos Troyjo, NDB President.
“Looking towards the future, we want to make sure that NDB is always enhancing the quality of its projects. We will focus on projects that can be catalytic in propelling sustainable development. Throughout this next strategy cycle, NDB will continue to pursue membership expansion in a gradual way, under the guidance of its Board of Governors,” added Mr. Marcos Troyjo.
NDB’s General Strategy for 2022–2026 will be uploaded separately to the NDB’s website.
Background information
NDB was established with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development.
The Bank’s first five-year General Strategy, implemented over 2017–2021, laid the foundations for the early years of NDB’s operations. Coming out of its first five-year strategy cycle, NDB has built a solid institutional profile, evidenced by its diversified portfolio of infrastructure and sustainable development projects and AA+ international credit ratings. The admission of the first four new members into the NDB in 2021 – Bangladesh, Egypt, the United Arab Emirates, and Uruguay – heralded the beginning of the Bank’s expansion as a global multilateral institution.