BRICS Bank Offers Zimbabwe Escape From IMF Debt Traps, Says Professor

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 emphasized the NDB’s role in helping countries like Zimbabwe escape debt cycles and discussed the introduction of Zimbabwe Gold (ZiG), a currency backed by mineral wealth, as part of a broader economic strategy.

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) in an interview with Russian publication RT, published on Monday. Chiwenga is also the founder and chairman of the NPC Zimbabwe-Russia Youth Foundation and actively promotes international partnerships.

Chiwenga stated that the NDB offers a more supportive alternative compared to the International Monetary Fund (IMF). According to him, the NDB was created to provide a “fairer system” for both BRICS members and developing nations, allowing them to avoid the debt traps associated with IMF loans. Contrasting the NDB’s approach to financial support, he explained:

Many nations, including Zimbabwe, have found themselves trapped in cycles of debt, with high interest rates and unfavorable borrowing conditions.

He added that the NDB’s “open-door policy” welcomes 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 primary purpose is to mobilize resources for infrastructure and sustainable development projects in these countries and other emerging markets. The NDB aims to provide an alternative to traditional global financial institutions like the IMF and the World Bank, offering more flexible and favorable lending terms, particularly to developing nations. The bank also expanded its membership beyond the BRICS nations, welcoming countries like Bangladesh, Egypt, the United Arab Emirates (UAE), Uruguay, and Algeria.

Chiwenga also discussed Zimbabwe’s current economic initiatives, particularly the introduction of the Zimbabwe Gold (ZiG), a currency linked to the nation’s mineral wealth. He noted that this was part of a broader strategy to secure the economy, describing:

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

Chiwenga further highlighted Zimbabwe’s longstanding 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 remarked, reaffirming that the partnership remains strong across areas such as agriculture, energy, and education.

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