South Africa’s programme is expected to improve municipal services and strengthen local economic development in several metropolitan regions….reports Africa News Desk
The Board of Directors of the New Development Bank (NDB) has approved a loan of up to USD 1 billion for South Africa to upgrade infrastructure and essential municipal services across eight metropolitan municipalities, while also advancing key transport infrastructure plans in India.
The decisions were taken during the 51st meeting of the NDB Board, held at the bank’s headquarters in Shanghai on June 9 and 10.
The Board approved financing for South Africa’s Programme for Upgrade of Infrastructure for Metropolitan Municipal Services, which aims to increase investments in water supply, sanitation, electricity and solid waste management across the metropolitan municipalities of Buffalo City, Cape Town, Ekurhuleni, eThekwini, Johannesburg, Mangaung, Nelson Mandela Bay and Tshwane.
According to the bank, the programme is expected to improve living conditions for residents, enhance the business environment and contribute to the country’s socio-economic development goals under South Africa’s National Development Plan 2030.
The initiative is also expected to support several United Nations Sustainable Development Goals, particularly those relating to sustainable cities and communities, clean water and sanitation, and affordable and clean energy.
In another key decision, the Board approved advanced procurement action from non-member countries for the Lucknow Metro Rail Phase-1B Project in India.
The project will expand Lucknow’s metro rail network through the construction of an 11.2-kilometre metro corridor with 12 stations, improving connectivity between the eastern and western parts of the Uttar Pradesh capital.
The Board also approved revisions to the bank’s operational expenditure calculation formula and adopted ZARONIA-based pricing for both sovereign and non-sovereign loans.
Directors reviewed the bank’s project pipeline for 2026 and discussed progress on membership expansion, welcoming Uzbekistan as the newest member country of the institution.
The Board further provided guidance on the formulation of the New Development Bank’s General Strategy for the 2027-2031 period.
Among other matters, the Board reviewed evaluation reports relating to the Delhi-Ghaziabad-Meerut Regional Rapid Transit System Project in India and the Country Portfolio Evaluation for China.
It also approved the bank’s condensed financial statements and those of the Project Preparation Fund for the three months ended March 31, 2026.
In addition, the Board cleared revised policies relating to liquidity risk management, exchange rate risk management and interest rate risk management.
Ahead of the Board meeting, the Audit, Risk and Compliance Committee and the Budget, Human Resources and Compensation Committee met at the bank’s headquarters on June 8 and June 9, respectively. The committees reviewed risk management, budget utilisation and human resources updates for the first quarter of 2026.
Established by the BRICS nations – Brazil, Russia, India, China and South Africa – the New Development Bank mobilises resources for infrastructure and sustainable development projects in emerging markets and developing countries. Since opening its membership to non-founding nations in 2021, the bank has continued to expand its global footprint and collaboration with developing economies.
