Cape Town Secures R2.8 Billion Infrastructure Loan

The City of Cape Town has secured R2.8 billion ($150 million) in financing from the International Finance Corporation (IFC) to support its ambitious three-year infrastructure investment plan, totaling R39.5 billion from July 2024 to June 2027. This investment aims to create approximately 130,000 construction-related jobs and focus on improving essential services, particularly in low-income areas. Mayor Geordin Hill-Lewis stated that this financing is part of a broader 10-year infrastructure strategy valued at R120 billion, addressing the city's growing urbanization and socioeconomic challenges. The loan has an 18-year tenor and will facilitate upgrades in water, sanitation, and transport infrastructure. This initiative follows additional financing approvals from Nedbank and the Agence Francaise de Developpement, showcasing a blended finance approach. The aim is to enhance infrastructure quality and inclusivity, preparing for Cape Town's anticipated status as South Africa's most populous city.