France is in advanced discussions to extend a loan to South Africa to help revitalise its struggling urban centres, according to the French ambassador.
The proposed funding would build on the $925 million already provided by the World Bank to support the National Treasury’s Metro Trading Services programme, which aims to improve water and sanitation systems, electricity supply, and waste management in major cities, Bloomberg reported.
Africa’s richest country by GDP, valued at $410 billion ,has increasingly turned to international partners to help fund its infrastructure overhaul amid mounting urban pressures.
In April last year, South Africa’s Treasury said it would seek additional support from global development finance institutions, including Agence Française de Développement, to complement the World Bank-backed initiative.
France is now close to finalising a further €100 million ($118 million) loan for the country’s metropolitan areas, said David Martinon at an event in Johannesburg. The funds are intended to help cities overhaul service delivery systems, particularly in water management, waste services, and the energy transition.
The programme targets urban areas home to about 22 million people, more than a third of South Africa’s population, spanning nearly 30,000 square kilometres.
Urban Service Strain
Service delivery in key metros, including Johannesburg and Durban, has declined in recent years, leading to recurring power and water outages.
In 2024, Business Insider Africa reported that Johannesburg, Africa’s wealthiest city, home to about 12,300 millionaires, 25 centi-millionaires, and two billionaires, needs an estimated 221 billion rand ($12 billion) to tackle its mounting infrastructure challenges.
Cyril Ramaphosa has consistently emphasised the importance of the government’s infrastructure programme, calling it essential to South Africa’s long-term economic stability and growth.
“Infrastructure is the flywheel that our economy needs to boost growth and to create jobs. Infrastructure that is well constructed and maintained encourages investors to see our country as a great investment destination,” said last year.
