South Africa has secured a $1 billion (about R18 billion) loan from the New Development Bank (NDB) to upgrade infrastructure across its eight largest metropolitan municipalities, as the government intensifies efforts to address a deepening service-delivery crisis that has disrupted businesses and households alike.
The funding, approved by the BRICS-backed lender during a board meeting in Shanghai, will support investments in water supply, sanitation, electricity distribution and waste-management systems across Johannesburg, Tshwane, Ekurhuleni, Cape Town, eThekwini, Nelson Mandela Bay, Mangaung and Buffalo City.
The loan comes as South Africa battles mounting infrastructure failures in several major cities, with recurring water outages, ageing pipelines, sewage spills and deteriorating municipal services increasingly threatening economic activity.
President Cyril Ramaphosa has repeatedly acknowledged that many municipalities are struggling to deliver basic services and has identified local government reform as one of the country’s most urgent priorities.
Why the loan matters
