South Africa Secures R16.3bn Loan to Fix Failing Municipal Services in Eight Major Metros
The performance-based financing will support water, sanitation, electricity and waste services, with repayment set over 16 years and a three-year grace period.
- On Tuesday, the Government of South Africa signed a $1 billion loan agreement with the New Development Bank to upgrade infrastructure for Metropolitan Municipal Services through the Metro Trading Services Reform Programme .
- The NDB prepared this loan in coordination with the World Bank, Asian Infrastructure Investment Bank, KFW Development Bank, and French Development Agency; this marks the country's second loan for the MTSR.
- National Treasury said the $1 billion loan will be repaid over 16 years with a three-year grace period, carrying interest linked to the Secured Overnight Financing Rate plus 1.18508%, tied to performance targets approved by metro Councils.
- Finance Minister Enoch Godongwana announced a three-year intervention plan targeting the City of Johannesburg, pledging National Treasury support regardless of November 4 election outcomes.
- Working with the Development Bank , the government aims to accelerate sustainable socio-economic development and improve residents' quality of life before South Africans head to the polls on November 4.
12 Articles
12 Articles
South Africa secures R16.3bn loan to fix failing municipal services in eight major metros
South Africa will use a $1 billion New Development Bank loan to improve the financial and operational performance of water, electricity and waste services in the country’s eight metropolitan municipalities.
South Africa agrees $1 billion infrastructure loan with New Development Bank
South Africa has secured a one billion dollar loan agreement. This funding from the New Development Bank will facilitate crucial municipal infrastructure upgrades. The loan carries a sixteen-year maturity and includes a three-year grace period. Interest rates are tied to Daily SOFR plus a fixed margin. The New Development Bank supports sustainable development projects in emerging markets.
MTSR is a reform programme of the Government of South Africa aimed at improving the management, financial sustainability and operational efficiency of municipal trade services in major urban municipalities, especially in the areas of water and sanitation, electricity and energy, and solid waste management."
South Africa secures $1 bn loan from BRICS bank - The Press United
The 15-year facility includes a five-year grace period and links funding to verified performance targets, Pretoria has said South Africa has secured a $1 billion loan from the BRICS-founded New Development Bank (NDB) to reform failing water, electricity and waste services across all eight of the country’s metropolitan municipalities, the National Treasury has announced. In […] The post South Africa secures $1 bn loan from BRICS bank appeared fir…
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