The International Finance Corporation has granted the City of Cape Town R2.8 billion in infrastructure funding (IFC). Through June 2027, Cape Town plans to invest R39.5 billion in infrastructure, Cape {town} Etc reports
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‘We are pleased to secure further finance towards our ambitious infrastructure investment agenda, which we estimate will create 130 000 construction-related jobs alone over three years,’ says Mayor Geordin Hill-Lewis.
‘Cape Town will soon be South Africa’s most populous city, and we are preparing for this by investing heavily in our fastest-growing, and poorest areas. This includes upgrades to critical water and sanitation, transport and electricity infrastructure.’
With an 18-year tenure, the IFC loan will assist the city in investing responsibly in assets with lengthy operational lifespans, he says.
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The city’s ten-year pipeline is worth an estimated R120 billion, with the majority of projects tied to the City’s overarching Climate Change Strategy.
‘We are delighted to announce our collaboration with the City of Cape Town in enhancing the standards of water and sanitation services, wastewater treatment, roads infrastructure and power supply to boost the city’s resilience,’ notes IFC Southern Africa Regional Director Cláudia Conceição.
‘In general, through the enhancement of infrastructure quality and related services, our partnership aims to establish a more favourable environment for residents and businesses in Cape Town.’
Cape Town issued a call for funding proposals for the fiscal years 2023/24 and 2024/25 in October 2023, which was followed by discussions with local and foreign lenders.
Along with the IFC financial approval in June, the council authorised R3.5 billion in Nedbank financing, and in April of last year, it approved €100 million in development financing from the Agence Francaise de Developpement.
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The City claims it is using a mixed finance model that incorporates funds from its own balance sheet as well as financing from local and foreign markets.
Additional financing agreements are scheduled to be presented to the council during the fiscal year 2024/25 to address the remaining funding requirements for the City’s infrastructure programme.
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Picture: Murray Swart
