South Africa has secured a $925 million loan from the World Bank to tackle a pressing urban crisis. This significant funding is dedicated to a six-year, nationwide program aimed at revitalizing eight major metropolitan areas, including Johannesburg, Cape Town, and Durban. The initiative represents a groundbreaking shift in strategy as the country’s first “program-for-results” project. Instead of providing unconditional funds, the program directly ties financing to performance, offering additional money as the cities meet specific operational and financial targets. The funds will specifically address critical services that have been deteriorating, such as water supply, electricity, and waste management. This performance-based approach is a direct response to long-standing issues such as bureaucratic inefficiency and political interference that have plagued municipal infrastructure.
SEMAFOR
