The New Development Bank (NDB) has approved a loan of up to US$1 billion to support urban infrastructure upgrades in eight South African metropolitan municipalities, as the country seeks to improve essential services and strengthen city development.
The lender, established by the BRICS group of emerging economies, said the financing would support investments in critical urban services including water supply, sanitation, electricity and solid waste management.
“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 benefit from the investment include Johannesburg, Cape Town, Buffalo City, Ekurhuleni, eThekwini, Mangaung, Nelson Mandela Bay and Tshwane.
The funding comes as South Africa faces growing pressure to improve ageing infrastructure, maintain reliable municipal services and address challenges affecting urban areas.
Local governments across the country have struggled with infrastructure backlogs, including challenges in water systems, electricity networks and waste management, prompting calls for increased investment to support sustainable urban growth.
The NDB said the programme is designed to strengthen service delivery and support long-term urban development by expanding investment in infrastructure needed for growing metropolitan populations.
The bank was created in 2015 by the founding BRICS members Brazil, Russia, India, China and South Africa — to finance infrastructure and sustainable development projects in emerging economies.
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Since its establishment, the NDB has supported projects focused on transport, energy, water, urban development and other areas aimed at promoting economic growth.
The institution expanded its membership in 2021 by admitting additional countries beyond the original BRICS founders.
South Africa has increasingly relied on partnerships with multilateral development institutions to finance infrastructure projects as it works to improve economic competitiveness and address public service challenges.
The latest NDB financing is expected to complement government efforts to modernise urban infrastructure and improve the quality and reliability of services provided to millions of residents in major cities.
Infrastructure investment has become a key focus for emerging economies seeking to stimulate growth, create jobs and attract private investment.
For South Africa, strengthening municipal infrastructure is also seen as critical to supporting businesses, improving living standards and ensuring cities can meet future economic demands.
The NDB said the approved programme reflects its broader mandate of supporting sustainable development and infrastructure investment in member countries.
