CAPE TOWN (Reuters) - South Africa wants to use 2 billion rand ($149 million)from the sale of its Vodacom shares as an initial capital contribution to the BRICS New Development Bank, the National Treasury said on Wednesday.
South Africa sold its stake in the mobile phone company to help raise money for cash-strapped power utility Eskom, which is building new power stations to help overcome electricity shortages in Africa's most advanced economy.
"The share sale is expected to yield total receipts of 25.4 billion, of which 23 billion has been provided to recapitalize Eskom," Treasury said in a document tabled in parliament.
The contribution to the New Development Bank is expected to be made before the end of February next year, the Treasury said.
With its headquarters in Shanghai and regional office in Johannesburg, the New Development Bank plans to raise money to fund infrastructure and other projects in Brazil, Russia, India, China and South Africa (BRICS) and other developing countries.
Initially, BRICS countries will be the only members, each with a shareholding of $10 billion and equal voting power, the Treasury said.
($1 = 13.4165 rand)
(Reporting by Wendell Roelf; Editing by Tiisetso Motsoeneng)
