AFD and city of Johannesburg strengthen long-term partnership for spatial transformation and climate transition

Under this MoU, AFD will continue to provide support to Johannesburg in implementing its strategic priorities. The city has long been confronted with significant challenges, including high levels of spatial and socio-economic inequality, ageing infrastructure, and the increasing impacts of climate change. The MoU formalises the commitment of both parties to work together on these issues through integrated strategies, enhancing access to basic services for marginalied communities, advancing spatial transformation, and addressing environmental challenges, particularly in light of climate change and the need for a just transition.

Building on two decades of cooperation

The relationship between AFD and the City of Johannesburg, dating back to 2004, has already resulted in development finance to the City and numerous technical cooperation programmes, collectively amounting to R6.4 bn (€338,5 m). Some of the notable initiatives supported by AFD include assistance to Joburg Water for improved water supply in Soweto, support for spatial transformation projects along the City’s strategic transit corridors, and inner-city regeneration initiatives. The partnership has also bolstered the City’s progress in spatial planning and digital innovation through the funding of research collaborations between the municipality and academic institutions.

Earlier this year, AFD provided a long-term loan of R2.5 bn (€128 m) to the City in support of Johannesburg's capital expenditure budget for the implementation of critical infrastructure, reaffirming its long-term commitment to the City. The newly signed MoU builds on these achievements and looks ahead to future projects. Two initiatives supported under this MoU are already in preparation and these will focus on enhanced water management and improvement of the City’s environmental and social impact management systems.

Additionally, AFD has committed to launching a comprehensive assessment of fiduciary risk in South African municipalities, with Johannesburg set to play a leading role in this process. This initiative aims to ensure best practices in public finance management and supply chain operations.

Mayor Morero’s recent election as President of the Global Fund for Cities Development (FMDV) positions him to further elevate the City’s international influence, particularly in advancing a progressive global funding agenda that addresses the critical needs of developing cities. Under his leadership, FMDV will focus on securing innovative financial solutions that drive sustainable urban development, prioritising equitable access to services for marginalized communities and fostering resilience in the face of climate change. His presidency highlights the importance of establishing partnerships that support developing cities in implementing the Just Transition, promoting inclusive growth, and addressing the unique challenges of spatial inequality through collaboration and solidarity across global networks.

A strong foundation for future development

Audrey Rojkoff, Regional Director for Southern Africa and Country Director for South Africa at AFD, expressed her enthusiasm for the extended partnership: “This MoU solidifies our ongoing commitment to Johannesburg’s sustainable development. Through our joint efforts, we aim to foster a more inclusive, resilient, and environmentally sustainable city.” The City of Johannesburg is equally committed to the success of this partnership, with Executive Mayor, Cllr. Dada Morero remarking, "We are thrilled to embark on this new phase of our partnership with AFD. This MoU represents a significant milestone in our journey towards creating a more equitable, climate-resilient, and sustainable Johannesburg. We look forward to working together to drive meaningful spatial transformation, reduce inequalities, and promote a Just Transition that benefits all our residents."

With this MoU, AFD and the City of Johannesburg look forward to achieving further success in driving transformative urban development that will benefit the people of Johannesburg for years to come.

Press contacts:
AFD: Melissa Cawthra, cawthram@afd.fr
City of Johannesburg: Nthatisi Modingoane, NthatisiM@joburg.org.za, 082 467 9228 and Zayd Ebrahim, ZaydE@joburg.org.za, 083 405 9229.