rki.news | Source: Xinhua
JOHANNESBURG, Aug. 7: South Africa and the Asian Infrastructure Investment Bank (AIIB) have signed a 500-million-U.S.-dollar sovereign-backed loan agreement to improve urban services and municipal performance.
According to a joint statement by South Africa’s National Treasury and AIIB, the financing marks AIIB’s first investment in the country and will support the South Africa Metro Trading Services Program.
The initiative aims to improve the sustainability, accountability and operational efficiency of municipal services, including water supply, sanitation, electricity and solid waste management, while promoting climate-resilient urban development.
Co-financed with the World Bank, the program is part of a wider 3-billion-dollar government initiative focused on governance, financial management and climate-smart investment in essential services.
South Africa’s metropolitan municipalities serve around 22 million people and generate nearly 85 percent of the country’s economic output but face challenges from aging infrastructure, urbanization and climate risks.
National Treasury Director-General Duncan Pieterse said the AIIB financing would strengthen municipal governance and service delivery.
AIIB official Rajat Misra said the partnership reflects a shared commitment to resilient, sustainable and well-managed cities.
By 2031, the program aims to improve performance across eight metropolitan municipalities, reduce water losses and lower electricity wastage.