South Africa, World Bank Launch $3 Billion Urban Revitalization Plan

South Africa, in collaboration with the World Bank, has launched a $3 billion initiative aimed at revitalizing infrastructure and essential services in eight major cities, including Johannesburg, Durban, and Cape Town. This plan includes a $1 billion loan from the World Bank and $2 billion in government funding, with grants contingent on municipalities meeting performance targets in water supply, sanitation, electricity, and waste management. The initiative responds to severe urban crises marked by power outages, water shortages, and inadequate waste collection, which have contributed to public discontent and political shifts, including the ANC losing its majority for the first time in decades. The Metro Services Trading Program will focus on cities housing 22 million residents across a vast area, introducing performance-based fiscal transfers to incentivize improvements in service delivery. The World Bank has emphasized the urgency of addressing the decline in urban services, highlighting the need for immediate reforms to ensure reliability and accessibility. This comprehensive strategy aims to tackle the pressing challenges faced by South African metros and restore public trust in local governance.