The African Development Bank Group (AfDB) has approved a ZAR 2.5 billion (approximately $139 million) corporate loan to the City of Johannesburg Metropolitan Municipality, marking the Bank’s first direct lending to a subnational entity in Africa.
- •The transaction will finance critical infrastructure projects in electricity, water, sanitation, and solid waste management, directly benefiting over 6 million residents in South Africa’s economic powerhouse.
- •The AfDB said it has included comprehensive safeguards in the project to assure robust monitoring and oversight, transparency, compliance, and sound financial management throughout the loan lifecycle.
- •An additional $1.5 million grant through the Bank’s Urban and Municipal Development Fund is being sought to support municipal reforms, governance and climate-resilient planning initiatives.
“Johannesburg is not just South Africa’s largest city – it contributes 16% to the country’s GDP and serves as a gateway for investment across the continent. By strengthening its infrastructure backbone, we’re investing in Africa’s urban future,” the African Development Bank’s Director General for Southern Africa, Kennedy Mbekean said.
AfDB’s loan to Johannesburg will finance over 100 projects across four sectors: upgrading distribution networks, installing smart meters, expanding renewable energy capacity, and connecting 3,200 new households to the grid; rehabilitating aging pipelines, upgrading treatment facilities, and reducing water losses from 46% to 37%; and improving landfill compliance, expanding recycling facilities, and enhancing waste collection services.
