South Africa secures $1 billion NDB loan for municipal water, energy, waste reform
South Africa has secured a $1 billion loan from the New Development Bank to upgrade metropolitan water, energy, and waste infrastructure — with disbursements tied to verifiable improvements in municipal governance, financial sustainability, and operational performance. Signed on September 15, the 16-year facility includes a three-year grace period and an interest rate of daily SOFR plus 1.18508%. It responds to acute fiscal stress, including Eskom’s municipal debt surge to 111.6 billion rand (up 17.9% by March 2026) and Johannesburg’s daily loss of 655 million litres of water. Co-financed by the World Bank, Asian Infrastructure Investment Bank, KfW, and the French Development Agency, the programme treats institutional reform as core infrastructure deliverable.