The BRICS bloc — comprising Brazil, Russia, India, China, South Africa, and recently expanded members — is set to announce a new investment guarantee fund backed by the New Development Bank (NDB). The goal: lower financing costs and unlock private investment in developing countries.
🔸 Modeled after the World Bank’s Multilateral Investment Guarantee Agency (MIGA), the initiative responds to shifting global investment flows amid uncertainty in U.S. economic policy.
🔸 Brazilian officials see this mechanism as the centerpiece of BRICS’ financial agenda during Brazil’s rotating presidency. It is expected to be highlighted in the joint communiqué at the upcoming BRICS Summit in Rio de Janeiro next week.
🔸 The new mechanism — dubbed the BRICS Multilateral Guarantee (BMG) — has received technical approval from all member states and awaits final sign-off by BRICS finance ministers, a step seen as a formality. Brazil’s Finance Ministry has declined to comment.
📌 Key Highlights:
No additional capital contributions are required from member nations at this stage.
The initiative will leverage existing NDB resources to support projects in developing economies.
Each $1 of guarantees by NDB is expected to mobilize $5–10 of private capital for pre-approved projects.
One official familiar with the matter noted:
“This is a politically significant instrument — a clear signal that BRICS is alive, delivering solutions, strengthening the NDB, and addressing global challenges.”
📆 Technical groundwork is expected to be completed by end of 2025, allowing for pilot projects to begin receiving guarantees in 2026.
The fund is designed to help BRICS countries — like many emerging economies — overcome barriers to attracting large-scale private investment in infrastructure, climate adaptation, and sustainable development.
💡 With a credit rating stronger than most of its member states, the NDB could provide the kind of risk mitigation that institutional investors and commercial banks require to engage with long-term development projects.
