South Africa: €350 Million Extends a Decade of Partnership with the BRICS Bank

Source: La Tribune | Original Published At: 2026-09-02 06:45:01 UTC

Key Points

• South Africa’s Treasury announced on August 28 the signing of two New Development Bank loans totaling $405 million, equivalent to approximately €350 million.
• A $200 million loan will help build the 488-bed Limpopo Central Hospital in Polokwane.
• The remaining $205 million will support the Magalies Bulk Water Supply Scheme across six municipalities in Limpopo and North West, aiming to secure reliable drinking water for approximately 2 million people.
• The loans have ten-year repayment terms, including four-year grace periods, and variable interest rates set at SOFR plus 0.93508 percentage points.
• The bank’s financing relationship with South Africa began with a $180 million Eskom loan approved in 2016 and has expanded into energy, roads, rail and water.
• South African Deputy President Paul Mashatile raised concerns about slow disbursements in November 2023, requesting faster funding for the second phase of the Lesotho Highlands Water Project.
• South Africa’s outstanding disbursed financing from the bank totaled $3.58 billion at the end of 2024.