South Africa has secured a $1 billion (about R16 billion) loan from the BRICS-linked New Development Bank (NDB) to help fund major infrastructure upgrades in the country’s eight metropolitan municipalities.
The funding is aimed at improving essential urban services, including water supply, sanitation, electricity distribution and solid waste management, as South Africa continues to grapple with worsening service delivery failures in many of its major cities.
According to reports, the metros expected to benefit from the programme are Johannesburg, Tshwane, Ekurhuleni, eThekwini, Cape Town, Nelson Mandela Bay, Mangaung and Buffalo City.
The loan approval was confirmed by the New Development Bank this week as part of a programme focused on upgrading infrastructure for metropolitan municipal services in South Africa.
The funding comes at a time when many urban areas are facing growing pressure from ageing infrastructure, water shortages, burst pipes, sewer spills, electricity network failures and maintenance backlogs.
Government is expected to use the money to support repairs, upgrades and investments aimed at stabilising and improving service delivery in the affected municipalities.
The development is being seen as a major financial boost for cities struggling to keep up with infrastructure demands and deteriorating municipal services.
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