Cape Town has secured R3.5 billion in finance from financial services group Nedbank for infrastructure investment over three years. The loan finance agreement will be spent on infrastructure development from July 2024 to June 2026 and falls under the city’s Building for Jobs budget.
The financing was green-lit on June 24 with the signing of a loan agreement between Cape Town’s Mayor Geordin Hill-Lewis and officials from Nedbank. The R3.5 billion in finance was approved by the city council on June 12.
“We are pleased to secure further finance towards our ambitious infrastructure investment agenda, which we estimated will create 130,000 construction-relation jobs alone over three years,” stated Mayor Hill-Lewis, adding, “Lower-income households will also directly benefit from 75% – or R9 billion – of Cape Town’s R12 billion infrastructure spend in 2024/25.”
Cape Town accounted for approximately 60% of overall government infrastructure expenditure in 2023, which totaled R100 billion. Furthermore, the loan agreement serves as the largest ever three-year infrastructure investment by a metropolitan municipality in the country.
Cape Town’s 10-year infrastructure investment pipeline is an estimated R120 billion, with the majority of projects falling in line with economic, social and governance standards and linked to the city’s strategy for climate change.
