The BRICS alliance is preparing to unveil a new investment guarantee fund, backed by the New Development Bank (NDB), aimed at reducing financing costs and stimulating investment in developing countries, according to Reuters, citing two sources familiar with the plans.
Modeled after the World Bank’s Multilateral Investment Guarantee Agency (MIGA), the BRICS Multilateral Guarantee (BMG) mechanism is designed to counter growing global investment uncertainty. The initiative is expected to be referenced in the group’s joint statement at next week’s summit in Rio de Janeiro.
One source said the BMG mechanism has already secured technical approval from BRICS member states and now awaits final signoff from their finance ministers, which is expected to be a formality. The fund will not require new capital contributions from member nations, instead using existing NDB resources to back selected development projects.
Officials anticipate that each dollar guaranteed by the NDB could leverage between five and ten dollars in private sector investment. Technical groundwork for the initiative is set to wrap by year-end, with the first projects expected to launch in 2026.
