- Performance-linked loan ties funding to service delivery
- Success hinges on municipalities meeting strict targets
PRETORIA, SOUTH AFRICA – South Africa’s $925mn World Bank loan is testing a new model of development finance, linking debt directly to measurable improvements in municipal services.
The agreement, centred on Metro Trading Services Reform, introduces performance-based lending — a structure where funds are released only after independently verified targets are met across water, sanitation, electricity, energy and waste management systems.
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