South Africa is set to receive a R7 billion (approximately $398 million) loan from the New Development Bank (NDB), commonly known as the BRICS Bank, to overhaul its aging road infrastructure.
This strategic investment aims to modernize key transportation routes, improve connectivity, ease traffic congestion, and enhance road safety along critical economic corridors.
The NDB, established by the BRICS bloc—Brazil, Russia, India, China, and South Africa—is gaining momentum as a major alternative financier for infrastructure projects across the Global South.
Its expanding role reflects a broader shift by African nations away from traditional Western lenders amid evolving global economic dynamics.
The loan was requested by the South African National Roads Agency (SANRAL) and forms part of a larger initiative to address decades of underinvestment in the country’s transport network.
The funding will help SANRAL upgrade four major freeways at a total cost of R12.7 billion, with additional funds earmarked for other infrastructure projects.
Speaking at the loan agreement signing in Johannesburg, SANRAL CEO Reginald Demana said final approval is pending a legal opinion from the state law adviser, which is expected within two weeks.
Officials anticipate the deal will be finalized soon, unlocking critical capital for South Africa’s transport and construction sectors—both seen as vital to economic recovery and long-term growth.
This development marks a significant turnaround for SANRAL. In 2019, the agency failed to secure a government-backed loan from the NDB due to concerns related to debt from Gauteng’s now-defunct tolling system. With those issues resolved, the government has since approved a R16.5 billion debt ceiling.
“We still need to go to the market to raise additional funding,” said Demana, referencing potential support from domestic bond investors, banks, and financial institutions. “The NDB might also be interested in exploring more rand-denominated funding,” he added.
Beyond infrastructure upgrades, the loan is expected to spur job creation, stimulate local economies, and facilitate the smoother movement of goods and people across the country.
SANRAL has emphasized its commitment to transparency and sustainability in the implementation of all projects financed by the loan, aligning with international best practices in infrastructure development.
