The City of Cape Town has secured an R2 billion loan from AFD, a French development bank, with plans to upgrade its infrastructure.<\/p>\n\n\n\n
The loan contributes to the record infrastructure investment budget of R43 billion over the medium term.<\/p>\n\n\n\n
According to the city, it has partnered with AFD to acquire a more favourable rate when tested against the market.<\/p>\n\n\n\n
“The \u20ac100 million from AFD, the French development bank – amounting to just over R2 billion on the date of issuing – is a developmental loan at a more favourable rate when tested against the market,” said the City.<\/p>\n\n\n\n
The metro plans to use the finances acquired to fund several categories of infrastructure, including water, sanitation (29%), urban mobility (24%) and access to electricity (17%).<\/p>\n\n\n\n
“Cape Town has an ambitious infrastructure investment portfolio of R120 billion over the next 10 years,” said the city’s mayor Geordin Hill-Lewis.<\/p>\n\n\n\n
“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,” said Hill-Lewis.<\/p>\n\n\n\n
“Our aim is to position the city for job\u2013creating economic growth and sustainability as we build towards our long-term vision of a city of hope for all.”<\/p>\n\n\n\n
Since 1994, AFD has been actively involved in South Africa and has established a strong partnership with the City. In 2013, AFD provided its initial loan to the metro.<\/p>\n\n\n\n