By Lehlohonolo Lehana.
The New Development Bank is lending South Africa $1 billion (around R16 billion) for the state to upgrade infrastructure in its eight biggest cities, the lender said.
The Bank is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) in 2015.
It was launched to mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).
Since its establishment, the lender has approved several projects in South Africa covering water infrastructure, transport systems, renewable energy and municipal development.
The program 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.
This loan comes amid the collapse of municipal infrastructure in South Africa’s largest metros, which is causing water outages, sewage spills, and rolling municipal blackouts.
The municipalities expected to receive investments are Johannesburg, Cape Town, Buffalo City, Ekurhuleni, eThekwini, Mangaung, Nelson Mandela Bay, and Tshwane.
Metros are incapable of generating the revenue required to sustain their operations, including infrastructure maintenance.
According to the lender, the upgrade programme ties directly into SA’s National Development Plan 2030, while also meeting United Nations targets for clean water, affordable energy, and sustainable communities.