The City of Cape Town has secured €100 million – about R2 billion – in developmental finance from AFD (the French Development Bank) towards its mega R43 billion medium-term infrastructure plans.

Cape Town Mayor Geordin Hill-Lewis conducted the signing ceremony with the Agence Francaise de Developpement yesterday, 21 June, following Council green-lighting the finance in April.

The funding from AFD, is a developmental loan at a more favourable rate when tested against the market.

AFD has been active in South Africa since 1994 and has a longstanding relationship with the City, with its first loan issued to the metro in 2013.

AFD’s intention is to support investments that will address socio-spatial inequalities and improve the City’s resilience to climate change events.

The funding will be spread across several categories of infrastructure, including water, sanitation (49%), urban mobility (24%), and access to electricity (17%).

Mayor Geordin Hill-Lewis says it all forms part of the City’s ambitious 10 year plan, in which it plans to spend R120 billion on infrastructure.

‘Our aim is to position the city for job–creating economic growth and sustainability, as we build towards our long-term vision of a city of hope for all.

‘To achieve this, we must lay the foundation now in the form of water and energy security, better sanitation, a cleaner environment for all, greater urban mobility, and climate change resilience.

‘We are grateful to our partners – including the AFD – who recognise our clear vision and plans for equitable development in the future.’ 

For its part, the AFD says it hopes this loan can further support the City in addressing socio-spatial inequalities and sustainable climate-resilient development.

Besides financial funding in the form of loans and grants, AFD has also provided technical assistance to plan major infrastructure projects.

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