The World Bank has approved a R15.9 billion loan to South Africa to underpin a six-year urban renewal programme aimed at restoring municipal services and boosting city resilience, reports Cape {town} Etc.
According to Business Insider Africa the funding will support performance-based investments in essential services such as water supply, electricity distribution and solid-waste management, with grants channelled to metropolitan municipalities that meet agreed targets.
Officials said the programme focuses on eight major metros, including Johannesburg and Cape Town, which together house more than a third of the country’s population.
City managers and residents have described chronic service shortfalls as a daily challenge, and local leaders welcomed the loan as a step toward more reliable services.
Bloomberg reports that the World Bank’s support builds on earlier cooperation with the South African government. which has secured several development loans in recent years to tackle infrastructure bottlenecks and stimulate growth.
Analysts note that the new financing forms part of broader, multi-year efforts valued at roughly R51 billion since 2022.
Treasury documents and World Bank summaries show the loan will be disbursed through performance-linked tranches, incentivising measurable service improvements at municipal level.
If cities meet the key performance indicators, the funding will unlock further investment aimed at restoring basic services and creating local jobs.
Compiled by Angelica Rhoda
First published on Cape {town} etc
Also see: Cyril Ramaphosa questions Cape Town’s ‘best-run’ claims
