By Irma Venter.
The City of Cape Town has secured R2.8-billion in infrastructure funding from the International Finance Corporation (IFC).
Cape Town aims to spend R39.5-billion on infrastructure from July this year to June 2027.
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 a tenor of 18 years, the IFC’s loan will help the city to invest sustainably in assets with long operational lifespans, he adds.
The city’s ten-year pipeline is valued at an estimated R120-billion, with the majority of projects also linked to the city’s overall 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 infrastructurwe 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 enviroment for residents and businesses in Cape Town.”
In October 2023, Cape Town published a request for funding proposals regarding financila years 2023/24 and 2024/25, which was followed by engagements with local and international lenders.
Alongside the IFC finance approval in June, the council has also approved R3.5-billion in finance from Nedbank, and, in April last year, it also greenlit €100-million developmental financing from the Agence Francaise de Developpement.
The city says it is following a blended finance model, which includes funding from its own balance sheet, as well as finance from the local and international markets.
Further financing agreements are set to serve before council during the 2024/25 financial year regarding the balance of the funding requirements for the city’s infrastructure programme.