South Africa - Loan to the City of Johannesburg Metropolitan Municipality for electricity, water and sanitation, solid waste projects (AFDB-P-ZA-KZ0-002)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 24, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
City of Johannesburg
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Law and Government
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 141.05 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Jan 8, 2026


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the scope of the transaction entails the Provision of an African Development Bank (AfDB) senior unsecured loan facility to the City of Johannesburg (CoJ) amounting to ZAR 2.5 billion (Under Subnational finance Guidelines) to support CoJ’s capital expenditure (CAPEX) needs, which will be used for maintaining and expanding delivery of basic services to its population. CoJ has struggled to meet rising demand for basic services from its growing population of residents within the Johannesburg metropolis with subsectors like energy, water, sewerage / sanitation, solid waste management taking the biggest toll due to lack of adequate financing to sustain the expansion of capacity needed to keep pace with rising demand. Therefore, the loan will seek to help address the financing gap in the aforementioned subsectors by unlocking additional funding towards CoJ’s critical sectors thereby enhancing productive capacity in the City. The CAPEX funds will be used by CoJ to exclusively finance capex requirements under trading services for electricity, water and sewage, and solid waste management projects. These projectshave been identified and defined and are primarily on brownfield sites. Most are already under implementation.

The Development Outcomes include expanded accessibility of potable water supply, improved quality of water, reduction of water and electricity technical and commercial losses, improvement in water quality discharged by sewerage treatment plants into rivers, Water Demand Management, Renewal of infrastructure, and general improvement in service delivery and access levels through increased service connections for all infrastructure.

Project main beneficiaries are City of Johannesburg (CoJ) residents. CoJ is the metropolitan municipality responsible for local governance and service delivery in the Johannesburg Metropolitan area. It is the largest metropolitan administrative municipality in South Africa. There are fourteen Municipal Owned Entities (MOEs) created for effective service delivery to the residents of the CoJ.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Finance Type: Standard loan
Commitments (UA): 106,114,757
Conversion Rate USD (2025-06-29): 1,32923


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Name: Victoria Celeste FLATTAU
Email: v.flattau@afdb.org

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process.

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/

How it works

How it works