Euros rain down on Cape Town to help fight climate change
The City of Cape Town on Wednesday said it had secured loan finance of more than R2bn to help fight climate change and enhance infrastructure development.
The €100m (about R2bn) loan from French development bank Agence Francaise de Developpement is good news for a city that six years ago faced the possibility of a “Day Zero” water crisis due to a crippling drought. It will help the city fund a R43bn medium-term infrastructure investment programme, with an emphasis on addressing socioeconomic inequalities.
The funds will be spread across several categories of infrastructure, including:
- water and sanitation (49%);
- urban mobility (24%); and
- access to electricity (17%).
Mayor Geordin Hill-Lewis said the loan agreement would help the city advance job-creating growth and a vision of “hope”.
“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,” he said.
“We are grateful to our partners — including the AFD — who recognise our clear vision and plans for equitable development in the future.”
Audrey Rojkoff, AFD Southern Africa regional director and country director for South Africa, said they had already partnered with the city on key impact infrastructure projects.
“With this loan, we hope to further support the city in addressing socio-spatial inequalities and sustainable climate-resilient development,” Rojkoff said
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