South Africa secures $405 million BRICS-backed loan for infrastructure

South Africa has secured $405 million in financing from the New Development Bank to fund major healthcare and water infrastructure projects, strengthening the country’s access to BRICS-backed development capital.

The loans, disclosed by South Africa’s National Treasury, will finance a new tertiary hospital in Limpopo and a bulk water supply project serving communities across Limpopo and North West provinces.

$200 million for Limpopo hospital

The New Development Bank (NDB) will provide $200 million for a planned 488-bed tertiary hospital in Limpopo, according to the National Treasury.

The project is designed to expand access to specialised healthcare services and strengthen medical infrastructure in the province, where demand for advanced healthcare facilities continues to grow.

The investment adds to South Africa’s efforts to address infrastructure gaps while using multilateral financing to support large-scale public projects.

$205 million for water infrastructure

A separate $205 million NDB loan will finance the Magalies Bulk Water Supply Scheme, which aims to address water shortages affecting six municipalities across Limpopo and North West.

The project is expected to improve water availability in areas where demand has outpaced existing supply, supporting households, businesses and public services.

Both loans have a 10-year maturity period, including a four-year grace period. They carry interest at the daily Secured Overnight Financing Rate (SOFR) plus 0.93508 percentage points.

BRICS bank expands role in Africa

The New Development Bank was established in 2015 by BRICS founding members Brazil, Russia, India, China and South Africa to mobilise financing for infrastructure and sustainable development projects in emerging markets and developing countries.

The bank later expanded its membership beyond the founding BRICS countries, broadening its role as a source of development finance for the Global South.

The NDB has positioned itself as an alternative source of funding to traditional multilateral institutions such as the World Bank and International Monetary Fund, particularly for infrastructure and sustainable development projects.

For South Africa, the $405 million package highlights the growing role of BRICS financing in funding critical infrastructure, from healthcare facilities to water systems, as the country seeks to close long-standing infrastructure gaps.