City of Johannesburg secures landmark R2.5bn AfDB loan

The African Development Bank (AfDB) Group has approved a R2.5 billion corporate loan to the City of Johannesburg Metropolitan Municipality, marking its first direct lending to a subnational entity in Africa.

This landmark transaction operationalizes AfDB’s Guidelines for Subnational Finance, aiming to finance critical infrastructure projects in electricity, water, sanitation, and solid waste management.

“This historic transaction demonstrates the African Development Bank’s commitment to supporting creditworthy cities as engines of economic growth,” said the African Development Bank’s Director General for Southern Africa, Kennedy  Mbekeani.

“Johannesburg is not just South Africa’s largest city – it contributes 16% to the country’s GDP and serves as a gateway for investment across the continent. By strengthening its infrastructure backbone, we’re investing in Africa’s urban future.”

The initiative is expected to benefit six million residents.

The loan will fund over 100 projects, including upgrading distribution networks, installing smart meters, expanding renewable energy capacity, and connecting