The financing will support National Treasury’s Metro Trading Services Reform (MTSR) programme through Germany’s KfW Development Bank (KfW) and Agence Française de Développement (AFD).
KfW will provide two-thirds of the combined financing package, while AFD will contribute the remaining third. The source did not provide a $ equivalent for the funding.
The MTSR programme seeks to improve the financial and operational performance of electricity distribution, water supply, sanitation and solid waste management services. SA’s eight metropolitan municipalities collectively serve more than 22 million residents.
The programme will support reinvestment of revenue from municipal trading services into infrastructure, helping reduce service interruptions and investment backlogs.
The financing forms part of Germany’s and France’s support for SA’s Just Energy Transition. MTSR will contribute to the municipal component of the Just Energy Transition Investment Plan by supporting infrastructure investment and modernisation of electricity distribution networks.
KfW has also provided additional concessional financing to Johannesburg and Cape Town over the past two years for electricity grid upgrades and renewable energy integration.
AFD’s support builds on previous partnerships with Johannesburg, eThekwini and Cape Town focused on municipal infrastructure, inequality reduction and climate resilience. “The concessional financing from KfW Development Bank and Agence Française de Développement strengthens the Government’s broader programme of support to improve the governance, financial sustainability and operational performance of essential trading services in metropolitan municipalities,” SA Minister of Finance Enoch Godongwana said.
KfW Country Director for SA Cornelia Tittmann said National Treasury’s programme could improve services and living conditions for millions of residents.
AFD Regional Director for Southern Africa Marie-Hélène Loison said MTSR brought eight municipalities and national departments together under a shared reform programme. “The MTSR programme will contribute to ensuring that the necessary investments in essential urban services are protected and sustained over time,” Loison said.
KfW and AFD also recognised support provided by the World Bank and Switzerland’s State Secretariat for Economic Affairs during the programme’s development.
–ChannelAfrica–
