Support for municipalities in South Africa

The INCA Municipal Debt Fund project, a R3 billion fund, supported by INCA Portfolio Managers, SECO and AFD was established to improve the supply of urban infrastructure in intermediate cities through a responsible investment policy, with priority given to essential urban services, and to contribute to the diversification of the municipal finance sector by creating a new window and mobilizing long-term financing from institutional investors. 

The fund will bridge the gap between municipalities (with their need for external funding) and pension funds, and/or institutional investors looking for investments that will deliver long-term annuity income. This initiative will bring about positive change by mobilising private sector funding for secondary municipalities, sustainable investment and further support for good governance and solutions to service delivery in the best interest of their citizens.

AFD2021