BRICS Bank Provides South Africa $1 Billion for Municipal Reform

By Mintesinot Nigussie  |  September 16, 2026

The New Development Bank, established by the BRICS countries, has agreed to provide South Africa with 1 billion US dollars to support reforms aimed at improving the financial and operational performance of metropolitan municipal services.

The financing will support South Africa’s Metro Trading Services Reform Programme, a government-led initiative covering essential municipal services including water and sanitation, electricity and energy, and solid waste management.

South Africa, one of the five founding members of the NDB alongside Brazil, Russia, India and China, will use the financing for a performance-based reform programme. Funding will be linked to institutional improvements and measurable targets approved by metropolitan municipal councils and independently verified.

The 16-year loan includes a three-year grace period and carries an interest rate of the daily Secured Overnight Financing Rate (SOFR) plus 1.18508 percent.

The NDB financing was prepared alongside the World Bank, Asian Infrastructure Investment Bank, KfW Development Bank and the French Development Agency, which are also involved in supporting the reform programme.

The programme is being implemented through South Africa’s existing legal, fiscal and institutional framework, with the government seeking to improve the governance and financial sustainability of municipal trading services.

The NDB was established by Brazil, Russia, India, China and South Africa following an agreement reached at the 2014 BRICS Summit and began operations in 2015. Its mandate is to finance infrastructure and sustainable development projects in its member countries and other emerging-market and developing economies.

The bank opened its Africa Regional Centre in Johannesburg in 2017, giving it a regional base from which to support infrastructure and development financing across Africa.

The latest financing comes as the NDB has expanded beyond its original five shareholders, adding countries from outside the founding BRICS group and developing its role as a wider development-finance institution for emerging economies.

Source: FSX Business News