South Africa is set to receive a $1 billion grant to develop its water and sanitation infrastructure. The New Development Bank (NDB), founded by the BRICS group of developing countries, has approved this significant loan. The funding will support the country’s Municipal Infrastructure Grant program, aimed at addressing infrastructure deficits and improving basic services for underserved communities.
Founded in 2015 by Brazil, Russia, India, China, and South Africa, the NDB has since expanded its membership to include the United Arab Emirates, Egypt, Bangladesh, and Uruguay. Algeria’s recent admission reflects the bank’s commitment to growing its membership among Global South countries. Dilma Rousseff, NDB President, noted that while there is considerable interest from other countries, each application requires a thorough evaluation before approval.
The BRICS bloc, which welcomed new members including the UAE, Egypt, Iran, and Ethiopia on January 1, has seen some countries yet to join the NDB. Saudi Arabia is still considering an invitation to join the group.
The NDB’s strategic goal is to finance long-term development projects while also addressing short-term financing needs for the private sector. The bank aims to issue 30% of its loans in the currencies of its member countries, though this target has not yet been met.