France is in advanced discussions to provide South Africa with a €100 million (R1.94 billion) loan aimed at improving service delivery in major cities.
According to French ambassador David Martinon, the deal is close to being finalised and is intended to support efforts to upgrade critical municipal services.
Focused on major urban centres
According to Bloomberg, the proposed funding would complement the $925 million already secured from the World Bank for National Treasury’s Metro Trading Services programme, which targets improvements in water, sanitation, electricity and waste management.
The initiative focuses on major urban centres such as Johannesburg and Durban, where residents have faced increasing challenges including power outages and water shortages.
More than 22 million people are expected to benefit from the upgrades.
Speaking at an event in Johannesburg, Martinon said the funding would help South Africa “renovate, change and reshape” how cities approach service delivery, particularly in water management, waste systems and the energy transition.
Part of a broader effort
National Treasury Director-General Duncan Pieterse underscored the importance of the programme, warning that economic growth depends on functional cities.
“If our cities do not work, South Africa cannot grow,” he said.
The funding forms part of a broader effort by government to secure international support for municipalities.
In 2025, Finance Minister Enoch Godongwana confirmed a loan package worth around R54 billion from institutions including the World Bank, the African Development Bank and Germany’s KfW.
Still being finalised
France’s development finance arm, Agence Française de Développement, is expected to play a key role in the latest agreement.
However, the deal is still being finalised after a previous loan request by the City of Johannesburg was declined due to non-compliance with earlier funding conditions.
If concluded, the agreement is expected to provide a significant boost to efforts aimed at restoring service delivery and infrastructure in South Africa’s key metros.
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