NDB, South Africa sign $405m loan agreements for hospital, water projects

Africa

PRETORIA, South Africa (NPA) — The New Development Bank (NDB) and the South African Government have signed two loan agreements worth a combined $405 million to support major healthcare and water infrastructure projects in Limpopo, North West and Gauteng.

The agreements will provide funding for the Limpopo Central Hospital Project and the Magalies Bulk Water Supply Scheme as part of South Africa’s efforts to advance sustainable infrastructure development.

In a statement issued on Friday, South Africa’s National Treasury said the New Development Bank would provide $200 million for the Limpopo Central Hospital Project, which involves the construction of a new 488-bed tertiary central hospital in Polokwane.

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The project is expected to strengthen tertiary healthcare services, expand access to quality medical care and improve health outcomes for residents of Limpopo Province.

Limpopo currently faces growing demand for tertiary healthcare services, ageing hospital infrastructure and shortages of specialised medical facilities.

The proposed hospital will provide modern and resilient healthcare infrastructure equipped with advanced diagnostic, treatment and information technology systems.

It is also expected to serve as the principal referral hospital for the province while increasing capacity to provide specialised and advanced healthcare services.

Beyond healthcare delivery, the facility will support medical education, clinical research and the training of future healthcare professionals.

Boost for water security

The NDB will also provide a $205 million loan for the Magalies Bulk Water Supply Scheme, aimed at improving access to reliable drinking water and supporting inclusive economic growth in the North West and Limpopo provinces.

The project is designed to address severe water shortages affecting six local municipalities, where current water demand exceeds available supply.

The affected municipalities are Bela-Bela, Modimolle-Mookgophong, Mogalakwena, Moretele, Moses Kotane and Rustenburg.

According to the National Treasury, both loans have a maturity period of 10 years, including a four-year grace period, with an interest rate of daily SOFR plus 0.93508 per cent.

The financing forms part of the South African Government’s broader efforts to strengthen public healthcare and water infrastructure while supporting long-term sustainable development.

National Treasury expressed appreciation to the New Development Bank for its continued partnership and support for South Africa’s infrastructure development agenda.

“The NDB’s project loans, together with financing secured from other multilateral development partners, have enabled Government to meet its 2026/27 foreign currency borrowing requirement of US$3.2 billion,” the National Treasury said.

The agreements represent another boost for South Africa’s infrastructure programme, with the investments expected to improve healthcare delivery and strengthen water security for communities across the affected provinces.