SA’s Bold $9 Billion Plan to Revive Failing Cities Gains Global Backing

South Africa is stepping up its efforts to rescue its struggling cities—home to over a third of the country’s population—by seeking additional support from some of the world’s largest development-finance institutions. The ambitious $9 billion regeneration plan, led by the National Treasury, aims to restore essential services and rebuild failing infrastructure across urban centers like Johannesburg and Pretoria.

Already backed by a $1 billion loan from the World Bank, the country is now in talks with major international players including the BRICS New Development Bank, the Asian Infrastructure Investment Bank, Germany’s KfW, and Agence Française de Développement. Together, these institutions manage over $768 billion in assets—offering a powerful financial cushion compared to South Africa’s domestic lenders.

The goal? To halt the slow collapse of services like water supply, electricity, waste collection, and sanitation that have become increasingly unreliable in major metros. With erratic power cuts and waste pileups becoming part of daily life in some areas, the urgency for meaningful action has never been greater.

“Various development partners have been invited to participate in the Metro Trading Services program,” the Treasury said. “Disbursements are dependent on municipalities meeting specific targets.”

The program focuses on the eight largest metros, which cover nearly 30,000 square kilometers—an area 20 times larger than London—and serve more than 22 million residents.

How the Funding Breaks Down

• World Bank: $1 billion

• South African Treasury: $2 billion

• Municipalities (via revenue & borrowing): $6 billion

That $9 billion total will be channeled into a results-based grant system. Cities that meet service delivery goals and improve revenue collection will receive funding disbursements starting this year.

The Treasury has earmarked part of its contribution in the latest national budget, citing the need to strengthen local infrastructure and improve the operations of municipal entities responsible for critical services.

“The new grant is intended to strengthen the management of, and infrastructure investment, in municipal entities that supply water and sanitation, electricity, energy and solid waste management services,” the budget review stated.

While the road ahead is steep, the plan signals a renewed commitment to tackling South Africa’s urban decay—one power outage, pothole, and missed rubbish collection at a time.

{Source BusinessTech}

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