The City of Cape Town and Agence Francaise de Developpement (AFD) today, 21 June, signed an agreement for €100 million in development finance for infrastructure. From left to right: Laurent Alberti, Consul General of France in Cape Town, Audrey Rojkoff, AFD Regional Director of Southern Africa and Country Director for South Africa, Cape Town Mayor Geordin Hill-Lewis, Amal Amélia Lakrafi, Minister of Parliament, French National Assembly, and Ambassador David Martinon, France’s Ambassador Designate to South Africa. Image: City of Cape Town
City of Cape Town takes R2bn loan from French development bank
The City of Cape Town obtained an R2bn loan from the Agence Francaise de Developpement (AFD) to fund its infrastructure projects.
The City of Cape Town and Agence Francaise de Developpement (AFD) today, 21 June, signed an agreement for €100 million in development finance for infrastructure. From left to right: Laurent Alberti, Consul General of France in Cape Town, Audrey Rojkoff, AFD Regional Director of Southern Africa and Country Director for South Africa, Cape Town Mayor Geordin Hill-Lewis, Amal Amélia Lakrafi, Minister of Parliament, French National Assembly, and Ambassador David Martinon, France’s Ambassador Designate to South Africa. Image: City of Cape Town
Cape Town Mayor signed the dotted line for a €100 million (R2bn) loan from the Agence Francaise de Developpement (AFD) on Wednesday, 21 June. The money will be used in the City’s R43 billion infrastructure budget over the medium term.
Cape Town Secures Loan from Agence Francaise de Developpement for Water, Sanitation, and Urban Mobility Projects
The City recently passed the record infrastructure budget and said the billions required would be funded through a blended finance strategy comprising revenue, grant funding and loans.
The French entity reportedly offered the loan with the intent that the financial support would address social-spatial inequalities in the City and improve Cape Town’s resilience to climate change events.
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“AFD has partnered with the City of Cape Town on a number of key impact areas, including municipal infrastructure, biodiversity and water security,” said AFD Southern Africa Regional Director Audrey Rojkoff.
Council approved the loan from the French development in April. The City said the loan was more favourable than the market rate.
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The bulk of the funding will be spent on water and sanitation infrastructure (49%), followed by urban mobility (24%) and access to electricity (17%).
“Cape Town has an ambitious 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.
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“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,” said Cape Town Mayor Geordin Hill-Lewis.
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