- France will provide a €100 million ($117.5 million) loan to support urban infrastructure in South Africa.
- The funding complements a $925 million World Bank program targeting metro services.
- The initiative focuses on restoring water, power and waste management systems in major cities.
France is preparing a €100 million (about $117.5 million) loan to South Africa to support the modernization of key urban infrastructure. David Martinon, France's ambassador to Pretoria, announced the plan on Tuesday. The loan will be disbursed through the French Development Agency (AFD). This will be the complement of one $925 million financing package From the World Bank.
These funds will support “Metro Trading Services” (MTS) The program is led by the National Treasury of South Africa. The program aims to stabilize the provision of water, electricity and waste management services in the country's main metropolitan areas.
“France is on the verge of providing 100 million euros (about 1.9 billion rand) of new loans to South African metropolises.”David Martinen said during an event in Johannesburg.
He said the funding will enable cities “Renew, transform and reshape the way service delivery is achieved, particularly in water management, waste and energy transition.”
The crisis of basic services is looming over the cities.
The MTS program targets eight metropolitan municipalities that host approximately 22 million residents, representing more than a third of South Africa's population.
Major economic centers such as Johannesburg and Durban have suffered severe infrastructure degradation in recent years. The country has experienced frequent power cuts and severe water crisis over the years.
According to international financial institutions, poor maintenance of the network and governance challenges at the municipal level have contributed to these disruptions.
part of a comprehensive strategic partnership
This financial commitment builds on the ongoing cooperation between Paris and Pretoria. AfD has been operating in South Africa since 1994 and has raised over €4 billion in the country.
France is also one of the main contributors to the Just Energy Transition Partnership (JETP). It has committed €1 billion to help South Africa transition away from coal. In June 2023, the City of Cape Town received a similar €100 million loan from AfD to finance climate-resilient infrastructure projects.
This article was originally published in French by Fiacre E. Kakpo
Adapted into English by Ange JA de Berry Quenam