Germany and France Provide €300 Million for South African Cities

Germany and France have committed €300 million in concessional loan financing to support the Metro Trading Services Reform (MTSR) programme in South Africa. The funding is split between the KfW Development Bank, which provided €200 million, and the Agence Française de Développement, which provided €100 million.

The initiative targets the financial and operational performance of electricity, water supply, sanitation, and solid waste management services. These improvements will affect eight metropolitan municipalities serving more than 22 million residents. The programme operates under the Just Energy Transition mandate and the JET-Investment Plan to modernize electricity distribution and resolve infrastructure backlogs.

Minister of Finance Enoch Godongwana stated that the financing strengthens government efforts to improve governance and financial sustainability in urban centers. In addition to the MTSR funding, KfW has provided €350 million in separate loans to Johannesburg and Cape Town over the last two years to support renewable energy integration and grid upgrades.