Multilateral development bank the Asian Infrastructure Investment Bank (AIIB) and South Africa have signed a $500-million sovereign-backed loan to support the South Africa Metro Trading Services Programme, which is aimed at improving the financial sustainability, accountability and operational performance of municipal services, including water supply and sanitation, electricity and solid waste management services, while supporting the country's transition to low-carbon, climate-resilient urban development.
The programme is co-financed with the World Bank as part of a broader $3-billion programme led by the South African government. The financing marks AIIB’s first investment in South Africa, establishing a new partnership to advance the country’s sustainable infrastructure priorities.
Through a performance-based financing approach, the Metro Trading Services Programme supports reforms that strengthen governance, operational efficiency and financial management while incentivising climate-smart investments in essential urban services.
South Africa's National Treasury notes that the country's metropolitan municipalities are home to about 22-million people and generate about 85% of the country’s economic output, but face mounting challenges from aging infrastructure, rapid urbanisation and increasing climate risks.
