SHANGHAI, China — The New Development Bank (NDB) has approved a loan of up to US$1 billion (approximately Sh129 billion) to South Africa to support a major programme aimed at modernising urban infrastructure and improving service delivery across key metropolitan areas.
The funding, approved during a meeting of the bank’s Board of Directors in Shanghai, will finance infrastructure upgrades in eight metropolitan municipalities, including Cape Town, Johannesburg, and Tshwane.
According to the NDB, the programme will focus on strengthening water supply and sanitation systems, improving electricity infrastructure, and enhancing solid waste management services.
The bank said the investment is expected to improve living standards for millions of residents while creating a more conducive environment for business and economic growth.
The project aligns with South Africa’s National Development Plan 2030, which seeks to address infrastructure deficits and accelerate sustainable development. It is also expected to contribute to the achievement of the United Nations Sustainable Development Goals, particularly those relating to sustainable cities and communities.
The approval comes as South Africa continues to grapple with infrastructure challenges, including ageing municipal systems, water shortages, and electricity supply constraints that have affected economic activity in several urban centres.
Beyond the South African financing package, the Board of Directors also approved the commencement of early procurement procedures for a major metro rail project in India.
The project involves the construction of an 11.2-kilometre metro line in Lucknow, the capital of Uttar Pradesh State, with 12 stations planned along the route. The procurement process will allow participation by firms from non-member countries of the bank.
The board further reviewed the institution’s condensed financial statements for the first quarter of 2026 and approved revisions to its risk management policy as part of efforts to strengthen governance and financial oversight.
Directors also discussed the bank’s pipeline of projects for the remainder of the year and reviewed assessment reports covering regional rapid transit investments in India and the performance of the bank’s project portfolio in China.
A key outcome of the Shanghai meeting was the formal admission of Uzbekistan as a new member of the New Development Bank, expanding the institution’s footprint beyond its founding members.
The board also provided guidance on the development of the bank’s next five-year strategy covering the period from 2027 to 2031.
Established in 2015 by the BRICS nations — Brazil, Russia, India, China, and South Africa — the New Development Bank was created to mobilise resources for infrastructure and sustainable development projects across emerging economies.
Since its inception, the bank has approved 139 projects valued at nearly US$43 billion. It has also expanded its membership since 2021, positioning itself as a growing multilateral lender focused on infrastructure financing and South-South cooperation.