China-based Brics bank set for lead role in hunger alliance this year, Brazil says

The New Development Bank, founded by the five Brics nations (Brazil, Russia, India, China, and South Africa), may lead efforts in the upcoming anti-hunger alliance this year, according to Brazil's social development minister, Wellington Dias. The Shanghai-based lender would provide cheap loans for impoverished families in Africa and Latin America, with a potential pilot program worth up to US$200 million launching by December.

The bank is collaborating with four other development lenders to design this scheme, each of which must complete compliance checks. The money will be directed towards Brazil's Global Alliance Against Hunger and Poverty, an initiative that was initially launched during a G20 summit Brazil hosted in Rio de Janeiro in November 2024 but fell off the group's agenda following the United States' presidency of the G20, which took place in December 2023.

The Trump administration has focused on deregulation, energy, technology, and trade, sidelining hunger and inequality as priorities. The alliance currently has 215 members but lacks funds, relying on members to finance programs. With no prior funding from the New Development Bank or the Asian Infrastructure Investment Bank, the guarantee fund presented by the Brics' bank would be a novel approach.

Local banks would lend to borrowers, and the guarantee fund would cover defaults, making financing more accessible for the poorest. China's involvement adds a financial element to its global anti-hunger alliance participation, which has previously focused on domestic policy and knowledge sharing.