Cape Town Debt

active

The City of Cape Town (CCT or “the city”) is located in the Western Cape province of South Africa and has a population of ~4.7 million people (approximately 8% of the population of South Africa) (https://www.capetown.org.za). In 2022, IFC supported the city under an advisory project focused on energy efficiency, power options analysis, and climate investment diagnostics, using IFC’s green cities platform, APEX. IFC is now considering a debt package of up to US$ 300 million (c. ZAR 5.7 billion) to CCT. This loan would partially support the city to finance its FY24/25 capital expenditure (CAPEX) subprojects, with a focus on infrastructure development and maintenance in the areas of energy, water, waste, and urban mobility among others. IFC proceeds will only go to CAPEX-related investment with limited environmental and social (E&S) risks and impacts, hence no activities contemplated in Listing 2 of the Environmental Impact Assessment Regulations, and with funding not extending to subprojects resulting in any degree of involuntary physical and/or economic displacement or impacts to critical habitats and/or key biodiversity areas.