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- The City of Cape Town has secured €100 million (R2 billion) in development finance for infrastructure projects.
- The development loan is provided through France's development bank – Agence Francaise de Developpement.
- The funding will support water, sanitation, urban mobility and access to electricity.
- For climate change news and analysis, go to News24 Climate Future.
The City of Cape Town has secured €100 million (R2 billion) in development finance for infrastructure projects.
The loan is to be provided by France's development bank, Agence Francaise de Developpement (AFD). The bulk of the funding (49%) will be directed to water and sanitation, followed by public transport initiatives called urban mobility (24%) and access to electricity (17%).
The agreement with AFD was signed on Wednesday. The city council approved the funding in April.
According to a statement from the City, the loan is at a "more favourable rate when tested against the market."
"AFD's intention is to support investments that will address socio-spatial inequalities and improve the City's resilience to climate change events," the statement read.
The AFD has had a long partnership with the City, having issued the first loan in 2013. It has supported the City in areas such as municipal infrastructure, biodiversity and water security, said Audrey Rojkoff, AFD Southern Africa regional director and country director for South Africa.
"Besides financial funding in the form of loans and grants, AFD has also provided technical assistance to plan major infrastructure projects," the statement read.
Mayor Geordin Hill-Lewis noted that the City has an infrastructure investment portfolio of R120 billion over the next 10 years.
"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," he said.
