The uMkhonto weSizwe (MK Party) asserts that it is through former president Jacob Zuma that South Africa secured R17.8-billion loan to improve water and sanitation infrastructure.
Nhlamulo Ndlhela, MK Party spokesperson, insists that Zuma played a crucial role in protecting South Africa from the financial constraints often imposed by the World Bank and the International Monetary Fund (IMF).
Ndlhela said Zuma achieved this by introducing South Africa to the New Development Bank (NDB).
NDB loan worth US$1-billion (R17,8-billion) approved
He said this after the National Treasury announced at the weekend that the NDB had approved a loan to South Africa. The loan, worth US$1-billion (R17.8-billion), is for financing water and sanitation infrastructure development. This under the Municipal Infrastructure Grant.
“Additionally, it was announced that a R5-billion loan agreement with Transnet was also extended,” said National Treasury in a media statement.
South Africa joined the BRIC group, now expanded to BRICS+, under Zuma’s leadership in 2010. Zuma also oversaw the establishment of the African Regional Centre of the BRICS NDB in 2017.
Ndlhela believes that the partnerships Zuma established during his presidency will continue to benefit South Africa in the future.
He expressed full support for the R17-billion loan from the NDB and the additional R5-billion allocated to Transnet.
Loan ‘did not come with neo-liberal and neo-colonial conditions’
Ndlhela said this loan was appreciated, because it did not come with the neo-liberal and neo-colonial conditions. Those conditions often associated with loans from the World Bank and IMF.
“Despite many distortions and propaganda spread by agents of imperialism and their domestic collaborators, president Zuma is a visionary who delivered the most impactful infrastructure during his tenure as president of South Africa.
“President Jacob Zuma knew that the prosperity of our country lies in building mutually beneficial relationships. Partnerships… with progressive countries in the world such as Brazil, Russia, India, and China. South Africa is now beginning to reap the benefits of BRICS participation,” said Ndlhela.
Minister of finance Enoch Godongwana confirmed the loan. He said the loan was designated for infrastructure development, specifically in the water and sanitation sectors.
This funding is intended as a conditional grant to municipalities to help reduce infrastructure backlogs. To also ensure that basic services reach less fortunate households.
Loan designated for infrastructure development
“We welcome the NDB’s funding commitments. They will significantly help with the financial challenges faced by some of our programmes and state-owned enterprises. Every bit of funding is appreciated.
“Of course, more detailed plans for our infrastructure development and funding will be presented. It will be presented in the Medium-Term Budget Policy Statement in October,” said Godongwana.
