Advanced talks are underway between France and South Africa over a potential loan aimed at supporting the country’s struggling urban infrastructure, according to the French ambassador.
The discussions centre on financing to help upgrade key city services, with the proposed support building on an existing $925 million World Bank package allocated to South Africa’s National Treasury under the Metro Trading Services programme. The initiative focuses on improving water systems, electricity provision, and waste management in major metropolitan areas, Bloomberg reported.
With a GDP of around $410 billion, Africa’s most industrialised economy has increasingly relied on international financial partners to address growing pressure on its urban infrastructure.
Back in April last year, South Africa’s Treasury indicated plans to seek further funding from global development finance institutions, including France’s Agence Française de Développement, to supplement the World Bank-supported programme.
Now, France is nearing completion of an additional €100 million ($118 million) financing arrangement for South Africa’s cities, according to David Martinon, who made the announcement at an event in Johannesburg. The funding is expected to support improvements in essential municipal services such as water supply, waste collection, and energy transition efforts.
The initiative targets metropolitan regions that collectively serve about 22 million residents—over a third of the country’s population—spread across nearly 30,000 square kilometres.
Urban infrastructure under pressure
Major cities such as Johannesburg and Durban have faced worsening service delivery challenges in recent years, with frequent disruptions in electricity and water supply.
A 2024 report by Business Insider Africa highlighted that Johannesburg, often described as the continent’s wealthiest city and home to thousands of high-net-worth individuals, requires an estimated 221 billion rand ($12 billion) to address its infrastructure backlog.
President Cyril Ramaphosa has repeatedly stressed the importance of infrastructure investment in driving long-term economic performance.
He has described infrastructure as a critical driver of growth and employment, noting that well-maintained systems also improve investor confidence in the country’s economic prospects.