South Africa’s plan to reward cities that meet key performance targets has been given a financial injection worth close to US$1 billion.

The ZAR19-billion (US$995 million) loan is the World Bank’s first programme-for-results in South Africa, reports Moneyweb. It has been involved in other smaller such programmes in Turkey, China and India.

‘This operation is designed to incentivise real performance improvements, accountability and institutional reforms through a results-based approach, contributing to better lives and livelihoods in South Africa,’ said Satu Kahkonen, the World’s Bank’s division director for South Africa.

The six-year US$3 billion Metro Services Trading programme – aimed at South Africa’s eight biggest metropolitan areas – will focus on improving infrastructure for water and power provision and waste collection. The initiative is also intended to better prepare the metros for climate shocks, such as drought and flooding, while helping them to form partnerships with the private sector to deliver services.

If the cities do not meet the performance targets, they will not receive the fiscal grant from the programme.

The programme covers Johannesburg, Cape Town, Durban, Pretoria, Ekurhuleni, East London, Bloemfontein and Gqeberha.

18 November 2025
Image: Unsplash