BRICS-backed New Development Bank (NDB) has approved a loan of up to $1 billion for South Africa to upgrade its urban infrastructure in eight metropolitan municipalities, NDB said.
"The programme aims to boost investments in the provision of essential urban services, including water supply and sanitation, electricity and solid waste management," the NDB said in a summary of a meeting of its board of directors.
The municipalities expected to receive investments are Johannesburg, Cape Town, Buffalo City, Ekurhuleni, eThekwini, Mangaung, Nelson Mandela Bay and Tshwane.
South Africa’s urban infrastructure is under immense strain due to aging systems, rapid urbanisation, and governance challenges.
Stabilising municipalities
Municipalities struggle with severe backlogs in electricity distribution, water reticulation, and road maintenance, directly impacting economic productivity and daily life.
Deputy President Paul Mashatile, in March, said the government is implementing measures to stabilise municipalities facing persistent service delivery challenges.
“The government has also initiated enforcement measures relating to water and sanitation failures,” Mashatile said at the time.
The NBC was established in 2015 by BRICS members Brazil, Russia, India, China and South Africa to fund infrastructure and sustainable development projects in emerging markets. In 2021 it expanded to include non-founding members.
