The South African government has signed a one-billion-dollar financing agreement with the New Development Bank (NDB) to modernise municipal services infrastructure across the country’s major metropolitan areas.
The funding forms part of the Metropolitan Trading Services Reform (MTSR) Programme, a government-led initiative designed to improve governance, financial sustainability and operational performance within municipal services.
The programme focuses specifically on the water and sanitation, electricity and energy, and solid waste management sectors.
According to South Africa’s National Treasury, the loan is performance-based, meaning disbursements are contingent on institutional strengthening and the achievement of measurable targets approved by metropolitan councils and independently verified.
The NDB’s support forms part of a broader government effort to reform municipal services and enhance their capacity to deliver services to residents.
The programme also draws financial support from the World Bank, the Asian Infrastructure Investment Bank (AIIB), KfW Development Bank and the Agence Française de Développement (AFD). Loan preparation was coordinated with development partners active in South Africa’s infrastructure sector.
Financial terms include a 16-year maturity period, a three-year grace period, and an interest rate equivalent to the Secured Overnight Financing Rate (SOFR) plus 1.18508%.
The National Treasury expressed its appreciation to the NDB for supporting the government-led reform, underscoring the objective of improving service quality for residents and contributing to stronger, more sustainable cities.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/16/mundo/africa/africa-do-sul-governo-garante-emprestimo-de-mil-m-para-reformar-servicos-municipais/
