South Africa is set to receive a R7 billion loan (around $398 million) from the New Development Bank (NDB), also known as the BRICS Bank, to help overhaul its aging road infrastructure.
The loan, requested by the South African National Roads Agency (SANRAL), is aimed at improving key transport routes, easing congestion, enhancing road safety, and boosting connectivity along major economic corridors.
The NDB, established by Brazil, Russia, India, China, and South Africa, is becoming a key alternative funding source for infrastructure projects across the Global South.
Its expanding influence comes as many African countries pivot from traditional Western lenders amid a shifting global financial landscape.
SANRAL says the investment is part of a broader plan to meet increasing transport needs after years of limited infrastructure spending.
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The funds will be used to upgrade four major freeways at a cost of R12.7 billion and support additional road projects.
The agency views the loan as a critical step toward reviving the construction and transport sectors, both seen as vital to economic recovery and long-term growth.
Speaking at the signing ceremony in Johannesburg on Tuesday, SANRAL CEO Reginald Demana said the loan’s final approval is pending a legal opinion from the state law adviser, expected within two weeks.
“We still need to go to the market to raise additional funding,” Demana said, citing domestic bond investors, banks, and other institutions as possible sources.
“The NDB might also be interested to look at more rand funding,” he added.
Back in 2019, SANRAL was unable to secure a state-backed loan from the NDB due to concerns over debt linked to Gauteng’s now-abandoned tolling system.
With that issue now resolved, the government has approved a debt cap of R16.5 billion, clearing the path for this new financing.
The loan is also expected to support job creation and boost local economies by enabling smoother movement of goods and people.
SANRAL has pledged that all projects funded through the loan will meet strict standards for transparency and sustainability.
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Image Credit: ANBA
