Cape Town – South Africa, with support from the World Bank, has launched a $3 billion (R54.6 billion) initiative to improve infrastructure and essential services in eight major cities, including Johannesburg, Durban, and Cape Town.
The plan comprises a $1 billion World Bank loan and $2 billion in government funding, allocated as performance-based grants to municipalities that meet targets in water, sanitation, electricity, and waste management, Daily Investor reported.
The government has introduced the Metro Services Trading Programme in response to growing public frustration over power failures, water shortages, and poor waste collection.
“South Africa’s metros are facing a crisis in the provision of basic services, marked by declining safety, reliability and accessibility,” the report quoted the World Bank as saying in documents about the program.
“Urgent action is needed to reverse the collapse of urban services.”
South Africa🇿🇦, backed by a $1 billion World Bank loan and $2 billion in government funds, is launching a $3 billion plan to restore services and infrastructure in eight major cities. Grants will support cities like Johannesburg, Durban, and Cape Town in improving water,… pic.twitter.com/sSQLSFmBqw
— AFRICA IS HOME GLOBAL (@AfricaisHOME2) March 27, 2025
According to Fin24, the programme targets cities housing 22 million people across nearly 30,000 square kilometers — almost 20 times the size of London.
Unlike previous infrastructure funding, it introduces performance-based incentives to improve service delivery.
The World Bank highlighted “a combination of grant reforms together with the provision of conditional financial incentives that encourage municipalities to aggressively target the challenges affecting service delivery”.
While National Treasury acknowledged plans for an incentive-based programme, it has not disclosed specific targets or funding details.
The initiative forms part of a broader $9 billion effort, including $6 billion from municipal revenue and borrowing, to enhance services, reduce water and electricity losses, and boost revenue collection, the report said.
Cities included in the programme are Bloemfontein, Pretoria, East London, Gqeberha, and Ekurhuleni.
Follow African Insider on Facebook, Twitter and Instagram
Picture: Pixabay
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
