AfDB extends first-ever non-sovereign loan to Johannesburg
AfDB extends first-ever non-sovereign loan to Johannesburg
The African Development Bank (AfDB) has approved a ZAR 2.5 billion ($139 million) corporate loan to Johannesburg, marking its first-ever subnational loan without a sovereign guarantee. This landmark decision allows the city to directly finance infrastructure projects without relying on national government backing.
The funding will support over 100 projects in electricity, water, sanitation, waste management, and utilities—benefiting 160,000 low-income households and creating 2,900 construction jobs and 592 permanent roles. It includes 3,200 new electricity connections, pipeline repairs, landfill upgrades, and expanded recycling, with ZAR 500 million allocated to youth-owned SMEs.
This move signals growing investor confidence in African municipalities and validates Johannesburg’s financial reformsand economic strength—with an output of $67 billion, larger than many African countries. The model may inspire similar financing efforts in other cities like Dakar, Cape Town, Nairobi, and Kigali.
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