CAPE TOWN, – The New Development Bank (NDB) has approved a substantial loan of up to $1 billion to support water and sanitation projects for underserved households in South Africa.
The announcement was made in a statement released by the bank on Saturday.
The loan will be allocated under South Africa’s Municipal Infrastructure Grant, a conditional grant program aimed at helping municipalities reduce service backlogs and improve the provision of essential services to poorer communities. This funding is expected to significantly enhance access to basic water and sanitation services in these areas.
Established in 2015 by the BRICS group of emerging economies—Brazil, Russia, India, China, and South Africa—the NDB aims to support infrastructure and sustainable development projects in member countries. In addition to the South African loan, the bank also approved a loan of $150 million, equivalent to the Chinese currency renminbi, for China’s Bank of Communications Financial Leasing.
This loan will finance the acquisition of at least three liquefied natural gas (LNG) carriers, addressing the growing demand for LNG in China. The NDB stated that this project will help close the gap between the supply and demand for LNG carrier capacity, a critical factor in ensuring the country’s energy security.