• 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, electricity, and waste management systems in major cities.

France is preparing to grant a €100 million (about $117.5 million) loan to South Africa to support the modernization of major urban infrastructure. French Ambassador to Pretoria David Martinon announced the plan on Tuesday. The loan will be disbursed through the French Development Agency (AFD). It will complement a $925 million financing package from the World Bank.

These funds will support the “Metro Trading Services” (MTS) program led by South Africa’s National Treasury. The program aims to stabilize the provision of water, electricity, and waste management services in the country’s main metropolitan areas.

“The France is on the verge of providing a new loan of 100 million euros (about 1.9 billion rand) to South Africa’s metros,” David Martinon said during an event in Johannesburg.

He added that the funding will enable cities to “renovate, transform and reshape the way they approach service delivery, particularly in water management, waste and the energy transition.”

Basic Services Crisis Weighs on Cities

The MTS program targets eight metropolitan municipalities that host about 22 million residents, representing more than one-third of South Africa’s population.

Major economic hubs such as Johannesburg and Durban have faced a sharp deterioration in infrastructure in recent years. The country has experienced recurring electricity outages and, in previous years, a severe water crisis.

Weak maintenance of networks and governance challenges at the municipal level have contributed to these disruptions, according to international financial institutions.

Part of a Broader Strategic Partnership

This financial commitment extends ongoing cooperation between Paris and Pretoria. The AFD has operated in South Africa since 1994 and has mobilized more than €4 billion in the country.

France also stands among the main contributors to the Just Energy Transition Partnership (JETP). It has committed €1 billion to support South Africa’s transition away from coal. In June 2023, the city of Cape Town secured a similar €100 million loan from the AFD to finance climate-resilient infrastructure projects.

This article was initially published in French by Fiacre E. Kakpo

Adapted in English by Ange J.A de Berry Quenum