Nedbank pumps R3.5 billion into Cape Town

The City of Cape Town has secured R3.5 billion in financing from Nedbank for infrastructure investment.

The R3.5 billion in financing, approved by the Council on 12 June, forms part of the city’s plan to spend R39.5 billion on infrastructure from July 2024 to June 2027 as part of its ‘Building For Jobs’ Budget.

The city said that this is the largest three-year infrastructure investment in a metro in South Africa’s history.

‘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,” said Cape Town Mayor Geordin Hill-Lewis.

“Lower-income households will also directly benefit from 75% – or R9bn – of Cape Town’s R12bn infrastructure spend in 2024/25.”

‘This pro-poor infrastructure spend in 2024/25 is bigger than the entire infrastructure budget of any other metro.”

“Cape Town will soon be SA’s most populous city, and we are preparing for this by targeting our fastest-growing and poorest areas with infrastructure projects that will, over time, unstitch the unjust legacy of our country’s past.”

Cape Town was heavily featured in Nedbank’s updated Capital Expenditure Project Listing for 2023, accounting for 60% of all government infrastructure projects announced nationally in 2023.

The city’s 10-year infrastructure pipeline is estimated at R120 billion.

In addition to the Nedbank finance approval in June 2024, the city’s Council also approved $150m (R2.7 billion) in finance from the International Finance Corporation (IFC)

The city also greenlit €100 million (R1.9 billion) in developmental financing from the Agence Francaise de Developpement (AFD).

The city uses a blended finance model, which includes funding from its balance sheet and local and international markets.

Further financing agreements will be announced before Council throughout the 2024/25 financial year.

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