BRICS bank approves R61.4bn loan to modernise South Africa’s metro utilities

The New Development Bank (NDB) has approved a loan of up to R61.4 billion (US$1 billion) to support a programme to modernise utility infrastructure across eight South African metropolitan municipalities.

What the funding will cover

According to the bank, the financing package will direct funds to water and sanitation infrastructure, electricity supply systems and improvements to solid waste management in eight metros, including Cape Town, Johannesburg and Tshwane. The investment is intended to improve residents’ quality of life and strengthen the business environment in the affected regions.

How the loan fits national and global goals

The NDB said the programme supports the objectives of South Africa’s National Development Plan 2030 and is expected to contribute to the achievement of the United Nations Sustainable Development Goals, notably those linked to sustainable cities and communities.

Board decisions and other approvals

The board approved the South African financing package during a meeting at the bank’s headquarters in Shanghai. At the same meeting the board also approved:

• the launch of early procurement procedures involving companies from non-member countries for the construction of a new metro line in Lucknow, India a project that includes 11.2 kilometres of track and 12 stations;
• the NDB’s condensed financial statements for the first quarter of 2026;
• a revised risk management policy.

Wider context

Established in 2015 by the BRICS countries, the New Development Bank was created to mobilise resources for infrastructure and sustainable development projects in emerging markets and developing economies. The bank has approved 139 projects valued at nearly US$43 billion to date. Since 2021 it has accepted new non-founding members and positions itself as a platform for broader cooperation among developing economies; the board welcomed Uzbekistan as a new member state during the meeting.

Reporting is based on the New Development Bank’s announcements at its Shanghai board meeting.