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Cape Town secures R3,5bn finance towards record infrastructure spend<span><p>Cape Town plans to spend R39,5bn on infrastructure from July 2024 – June 2027, as approved in its 'Building For Jobs' Budget. This is South Africa's largest ever three-year infrastructure investment by a metropolitan municipality. </p><p>Cape Town accounted for a full 60% of the R100 billion in overall government infrastructure projects announced nationally in 2023, according to Nedbank's updated Capital Expenditure Project Listing for 2023, published in February 2024. <br></p> <figure class="subtopic-fullsize-img"> <img src="https://resource.capetown.gov.za/cityassets/Media%20Images%202/DSC_8510.jpg" class="responsive" alt="" style="width:789px;" /> </figure>​​</span><p>'We are pleased to secure further finance towards our ambitious infrastructure investment agenda, which we estimate will create 130 000 construction-related jobs alone over three years. Lower-income households will also directly benefit from 75% - or R9bn - of Cape Town's R12bn infrastructure spend in 2024/25. </p><p> </p><p>'This pro-poor infrastructure spend in 2024/25 is bigger than the entire infrastructure budget of any other metro. Cape Town will soon be SA's most populous city, and we are preparing for this by targeting our fastest-growing, and poorest areas, with infrastructure projects that will, over time, unstitch the unjust legacy of our country's past,' said Mayor Hill-Lewis.</p><p> </p><p>The City's 10-year pipeline is valued at an estimated R120bn. The majority of the projects are classified as 'Economic, Social and Governance (ESG)' and linked to the City's overall Climate Change Strategy. </p><p> </p><p>In October 2023, the City published a request for funding proposals (RFP) regarding financial years 2023/24 and 2024/25, which was followed by extensive engagements with local and international lenders. </p><p> </p><p>Alongside the Nedbank finance approval in June 2024, City Council further approved $150m in finance from the International Finance Corporation (IFC), and in April 2023, greenlit €100 million developmental financing from the Agence Francaise de Developpement (AFD).<strong> </strong></p><p><strong> </strong></p><p>The City is following a blended finance model, which includes funding from its own healthy balance sheet, as well as finance from the local and international markets. </p><p> </p><p>Further financing agreements are set to serve before Council during the 2024/25 financial year regarding the balance of the funding requirements for the City's infrastructure plans.</p><p> </p><p><strong>Caption:</strong> Cape Town Mayor Geordin Hill-Lewis with City and Nedbank officials at the ceremonial signing of a R3,5bn development finance agreement on 24 June 2024.</p><p> </p><p> </p><p><strong>End</strong></p><p> </p><p><br></p>2024-06-24T22:00:00ZGP0|#1d539e44-7c8c-4646-887d-386dc1d95d70;L0|#01d539e44-7c8c-4646-887d-386dc1d95d70|City news;GTSet|#62efe227-07aa-45e7-944c-ceebacca891dGP0|#46cd6f1c-873b-40f4-9f8a-883fa56784e5;L0|#046cd6f1c-873b-40f4-9f8a-883fa56784e5|infrastructural upgrades;GTSet|#2e3de6c1-9951-4747-8f53-470629a399bb;GPP|#fa689e9d-c6a8-4381-8a1c-f55592d5d2a4;GP0|#90b49a62-96e2-436a-9c68-187c9ab33534;L0|#090b49a62-96e2-436a-9c68-187c9ab33534|Mayor;GP0|#616d06d3-df1e-4f8f-8f3f-46854851d694;L0|#0616d06d3-df1e-4f8f-8f3f-46854851d694|Finance10

 

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