The Development Bank of Southern Africa has signed a long-term loan facility with the South Africas City of Tshwane for US$150mn
This loan was signed to support the city's capital expenditure programme, such as the removal of backlogs in water and sanitation, roads, electricity and housing-related infrastructure. The loan will also support the city's growth and development initiatives, stated reports.
Jason Ngobeni, manager of City of Tshwane, said, "The facility will be utilised to aggressively fast-track the city's infrastructure capital programme. This level of capital investment in the city was necessitated by the need to improve the enlarged infrastructure, which now includes the erstwhile municipalities of Metsweding, Nokeng Tsa Taemane and Kungwini."
According to the bank, this is a 20-year loan tenure, which would additionally support the municipalities to deliver socio-economic infrastructure – an attempt to address the country's triple challenges of high unemployment, poverty and inequality.
Tshokolo Nchocho, group executive for South Africa Financing Division at DBSA, said, "We are pleased to be part of this capital expansion programme, which signifies the bank's commitment to contribute towards the development of social and economic infrastructure in the City of Tshwane."
The city, like several other metropolitan municipalities in South Africa, has been hit by a number of infrastructure backlogs. DBSA has stated that it will provide comprehensive support programmes, aimed to address each metro's needs, in order to ensure the metropolitan municipalities remain at the centre of South Africa's economic growth.
