The New Development Bank (NDB) and the South African Government have signed two loan agreements worth a combined US$405 million to strengthen healthcare and water infrastructure.
National Treasury said the financing will support the Limpopo Central Hospital Project and the Magalies Bulk Water Supply Scheme, advancing infrastructure development across Limpopo, North West and Gauteng.
The NDB will provide US$200 million towards the construction of a new 488-bed tertiary central hospital in Polokwane.
The Limpopo Central Hospital is expected to expand access to specialised medical care at a time when the province is experiencing growing demand for tertiary healthcare, ageing infrastructure and shortages of specialised facilities.
The new facility will be equipped with modern diagnostic, treatment and information technology systems and will serve as the province’s principal referral hospital.
Beyond patient care, the hospital is also expected to support medical education, clinical research and the training of future healthcare professionals.
A further US$205 million will finance the Magalies Bulk Water Supply Scheme, aimed at improving access to reliable drinking water and supporting economic development in communities facing severe water shortages.
The project will benefit six municipalities where water demand currently exceeds available supply: Bela-Bela, Modimolle-Mookgophong, Mogalakwena, Moretele, Moses Kotane and Rustenburg.
According to National Treasury, both loans have a 10-year maturity period, including a four-year grace period, with an interest rate of daily SOFR plus 0.93508%.
The agreements form part of Government’s broader efforts to strengthen public health and water infrastructure while securing financing for its development programme.
National Treasury said the NDB financing, together with funding secured from other multilateral development partners, has enabled Government to meet its US$3.2 billion foreign currency borrowing requirement for 2026/27.
“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,” National Treasury said.
