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Support the City of Cape Town with inclusive and resilient urban development
Project
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Project start date
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Status
Ongoing
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Project end date
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Project duration
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15 years
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AFD financing amount
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100 000 000 €
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Country and region
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Location
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City of Cape Town
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Type of financing
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Beneficiaries
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City of Cape Town (CCT)
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Type of beneficiary
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Local public authority
AFD supports the City of Cape Town’s sustainable, inclusive, and climate-resilient urban development in the face of growing environmental and demographic pressure.
Context
The City of Cape Town is the second-largest city in South Africa generating 10 percent of national GDP. The metropolitan area is a global biodiversity hotspot, highly vulnerable to climate change. It includes fragile coastal and wetland ecosystems – such as 307 km of coastline exposed to sea-level rise and the wetlands of the Cape Flats, a rapidly urbanized alluvial plain between Table Mountain and the Cape Fold Mountains. Rapid urbanization of ecologically sensitive areas, combined with increasing climate risks (floods, fires, droughts), requires the City to develop clear, coordinated strategies, sufficient financial resources, and technical cooperation to deliver high-quality climate-resilient infrastructure.
Description
The aim of the project is to support Cape Town’s sustainable development strategy as set out in its five-year development plan (IDP 2022-2027) in a context of increasing effects of climate change. The specific objective is for the city to become more inclusive and environmentally sensitive. AFD's financing is therefore based on an already structured policy supported at the highest political level, whose strategic orientations in terms of urban planning aimed at reducing inequalities and adapting to climate change are aligned with those of AFD.
The loan prioritizes water, sanitation, and drainage (49%); urban mobility (24%); and access to electricity (17%), with 50% dedicated to new assets, 25% to renewals, and 25% to upgrading existing infrastructure.
Impacts
The project strengthens the City’s ability to implement its municipal strategy with full ambition and within planned timelines, reinforcing Cape Town as a leading example of effective municipal management in South Africa and internationally. Expected impacts span multiple dimensions of sustainable development: improved governance, strengthened climate adaptation and mitigation capacities, protection of biodiversity, reduced socio-spatial inequalities, and enhanced economic development.
Sustainable Development Goals
Sustainable Cities and Communities
Goal 11 seeks to rehabilitate and plan cities and all human settlements in ways that offer everyone employment opportunities and access to basic services, energy, housing, transportation, green public spaces, and more – while improving resource use and reducing environmental impact.
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