World Bank Approves $925 Million Loan to Boost Services in South Africa’s Metros
Econ Desk
– November 16, 2025
2 min read
South Africa has secured a $925 million (R17 billion) loan from the World Bank to help improve basic services in the eight metros. The loan forms part of a broader $3 billion (R55 billion) government effort to strengthen municipal infrastructure.
The funding supports a new six-year initiative, the South Africa Metro Trading Services Program, which is the World Bank’s first Programme-for-Results (PforR) in the country.
Unlike a standard loan, the PforR model releases money only when municipalities meet agreed operational and financial performance targets.
The programme focuses on improving water supply, sanitation, electricity distribution, and waste management. The cities involved in the programme are South Africa’s eight metros; Buffalo City, Cape Town, Ekurhuleni, Johannesburg, Tshwane, eThekwini, Mangaung, and Nelson Mandela Bay.
Finance Minister Enoch Godongwana described the World Bank deal as a flagship intervention under Operation Vulindlela, the government’s reform initiative. To support implementation at local level, Godongwana met with mayors from all participating metros in October.
