Zimbabwe Professor Advocates BRICS Bank and Gold-Backed Currency

Kudzai Dominic Chiwenga, an associate professor at the University of Zimbabwe, has emphasized the benefits of the BRICS New Development Bank (NDB)

A Zimbabwean professor has highlighted the BRICS New Development Bank (NDB) as a crucial alternative to the International Monetary Fund (IMF), offering better financial terms to developing nations. He also discussed the introduction of Zimbabwe Gold (ZiG), a currency backed by mineral wealth, as part of a broader economic strategy.

An associate professor at the University of Zimbabwe has highlighted the benefits of the BRICS New Development Bank (NDB) in an interview with Russian publication RT, published on Monday. Kudzai Dominic Chiwenga, who is also the founder and chairman of the NPC Zimbabwe-Russia Youth Foundation, actively promotes international partnerships.

Speaking about the NDB, Chiwenga stated that it serves as a more supportive alternative compared to the International Monetary Fund (IMF). He explained that the NDB was established to provide a “fairer system” for both BRICS members and developing nations, enabling them to avoid the debt traps associated with IMF loans.

Highlighting the contrasting approach to financial support, he said that the IMF, known for its strict lending conditions and high-interest rates, leaves many nations, including Zimbabwe, in cycles of debt. In contrast, the NDB operates with an “open-door policy,” welcoming other countries seeking better economic solutions.

The BRICS New Development Bank is a financial institution founded in 2015 by the BRICS nations: Brazil, Russia, India, China, and South Africa. Its main objective is to mobilize resources for infrastructure and sustainable development projects in these countries and other emerging markets, aiming to complement the efforts of existing global development institutions.

The NDB is designed to offer an alternative to traditional financial bodies like the IMF and the World Bank, providing more flexible and favorable lending terms, especially for developing nations. In recent years, the bank has expanded its membership beyond the BRICS group, welcoming nations such as Bangladesh, Egypt, the United Arab Emirates (UAE), Uruguay, and Algeria.

Chiwenga also touched upon Zimbabwe's current economic initiatives, specifically the introduction of the Zimbabwe Gold (ZiG), a currency pegged to the nation's mineral wealth, as part of a broader strategy to secure the economy. He explained that this initiative is part of a wider plan to bolster the economy.

“In Africa, we are rich in minerals, and naturally, we want to tether our economy to the areas where we are strongest in,” Chiwenga said.

Chiwenga highlighted Zimbabwe's long-standing diplomatic relationship with Russia, which he said dates back to the Soviet Union's support during Zimbabwe's liberation struggle. “The Soviet Union was one of the few nations that stood by Zimbabwe during this critical time,” Chiwenga said, adding that the partnership spans various sectors, including agriculture, energy, and education.

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