Modernising the metros: A R16.4bn NDB loan is set to overhaul water, electricity, and waste infrastructure across eight South African municipalities.
Image: Itumeleng English/ Independent Newspapers
The Board of Directors of the New Development Bank (NDB) has approved a loan of up to R61.4bn (US$1 billion) for South Africa to support a programme aimed at modernising urban utility infrastructure, according to the bank.
The programme will cover eight metropolitan municipalities, including Cape Town, Johannesburg and Tshwane. Funding will be directed towards water and sanitation infrastructure, electricity supply systems and improvements to solid waste management.
The investment is expected to improve residents' quality of life and strengthen the business environment in the affected regions, supporting the objectives of South Africa's National Development Plan 2030. The project is also expected to contribute to the achievement of the United Nations Sustainable Development Goals, particularly those related to sustainable cities and communities.
The funding was approved during a meeting of the NDB Board of Directors at the bank's headquarters in Shanghai.
In addition to the South African financing package, the board approved the launch of early procurement procedures involving companies from non-member countries for the construction of a new metro line in Lucknow, the capital of India's Uttar Pradesh state. The project includes the construction of 11.2 kilometres of track and 12 stations.
The board also approved the NDB's condensed financial statements for the first quarter of 2026 and a revised risk management policy. Directors discussed the bank's prospective project portfolio for the year and reviewed assessment reports on a regional rapid transit project in India and the NDB's project portfolio in China.
The expansion of the bank's membership was also discussed. The board welcomed Uzbekistan as a new member state.
Directors further provided recommendations on the development of the NDB's strategy for the 2027-2031 period.
Established in 2015 by the BRICS countries — Brazil, Russia, India, China and South Africa — the New Development Bank was created to mobilise resources for infrastructure and sustainable development projects in emerging markets and developing economies.
To date, the bank has approved 139 projects valued at nearly US$43 billion. Since 2021, it has accepted new non-founding members and positions itself as a platform for broader cooperation among developing economies.
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