SA Set for R1.9 Billion Boost as France Steps In to Fix Failing Cities: SA Reacts

SA Set for R1.9 Billion Boost as France Steps In to Fix Failing Cities: SA Reacts

  • South Africa is nearing a R1.9 billion funding agreement with France to support renewal in major cities facing ongoing service delivery challenges
  • The loan will complement existing World Bank funding and focus on upgrading water, sanitation, electricity, and waste management systems
  • South Africans have expressed reservations about the deal, many believing the money will not reach where it is intended to
SA and France
SA is close to finalising a R1.9 billion funding deal with France. Image: Ludovic Marin/ Getty Images
Source: Getty Images

SOUTH AFRICA —South Africa is close to finalising a major funding deal with France aimed at improving service delivery in its largest cities, as infrastructure challenges continue to affect millions.

This is according to French ambassador David Martinon, who revealed that the European nation is preparing to provide a €100 million (about R1.9 billion) loan to support urban renewal efforts in South Africa. He made the announcement at an event in Johannesburg.

South Africans took to the comments section to express displeasure with what they call a 'loan', with many believing the money would not revitalise the cities but end up looted by corrupt politicians.

Read also

Home Affairs shuts down ‘passport-free travel’ claims between Lesotho and SA

What does this funding entail?

According to the Daily Investor, the funding will complement an existing $925 million loan from the World Bank, which backs the South African National Treasury’s Metro Trading Services programme. The initiative focuses on improving water and sanitation systems, electricity supply, and waste management.

The Treasury had previously indicated it would seek additional support from global development finance institutions, including France’s state-owned Agence Française de Développement.

Martinon said the new funding is intended to help municipalities “renovate, change and reshape” how they deliver essential services, particularly in water, waste, and energy transition projects.

Programe to target run down area in major cities

The programme targets major metropolitan areas where around 22 million people—more than a third of the population—live across nearly 30,000 square kilometres. This is roughly 20 times larger than London.

Cities such as Durban and Johannesburg have experienced worsening service delivery in recent years, with frequent power cuts and water shortages affecting residents and businesses.

Read also

Bring back Mxit!’: WhatsApp’s paid plan sparks wild reactions in Mzansi

The planned agreement comes as President Cyril Ramaphosa’s government faces mounting pressure to stabilise infrastructure and restore confidence in urban management.

South Africans weigh in

Netizens have expressed reservations about the deal with France.

@CutmansCurs3 said:

"Lend?? That denotes intention to repay... The ANC will not repay any loan, and I guarantee you they will NOT revitalise towns or cities.That money is already allocated to lifestyle upgrades"

@CosmicCrackler said:

"It's amazing how a country like France can even consider giving the South African government money to "regenerate" rundown cities. The ANC had all the budgets and funding they needed for exactly that and it was stolen and looted instead."

@JamesAMillar said:

"OMG, SA already has all the wealth it needs to maintain its cities - but theft knows no limits. A EURO loan will only further indebt the SA taxpayer with almost no guarantee of any improved governance."

@malenong said:

"There you go Mr President. Plunging the country into more debt. Are you serious about developing the country Sir? Stop cadre deployment and #BEE. South Africa is way more capable of developing itself if the looting stops."

Read also

Siya Kolisi turns coffee into a lifeline in R60 million hunger fight

@TAchadinha67856 said:

"More money for the corrupt ANC to steal. This is the second such loan the EU loaned ($13.3 billion or over R230 billion) and that’s not enough? South Africa has been sold to the globalists!"

ANC vows to tackle service delivery issues

In related news, the ANC vowed to ramp up their efforts to tackle service delivery issues in South Africa. The ANC said it will establish a dedicated ‘war room’ to address the challenges. The war room will be led by the party’s Secretary-General, Fikile Mbalula and will address the issues of local government challenges. The ANC revealed the war room would be established after the State of the Nation Address (SONA), ahead of this year's Local Government Elections, but the ANC has maintained that this is not an election gimmick, but a real response to the country’s growing challenges.

service delivery
The SA-France deal is set to renew urban areas that have been neglected due to ongoing service delivery failures. Image: Jaco Marais/ Getty Images
Source: Getty Images

DA is open to working with ANC in fixing service delivery issues

Read also

Woman shared merSETA internship programme for graduates across South Africa

Briefly News reported that the Democratic Alliance said they are open to working with the ANC to fix service delivery issues. This was after President Cyril Ramaphosa recently said that the DA has areas of service delivery that the ANC could learn from. Ramaphosa said that ANC councillors should not be afraid of learning from how DA-run municipalities are doing things differently.

DA spokesperson Willie Aucamp said that the DA is here to serve South Africa. He added that if the party can make any meaningful contribution where the ANC governs, it will not hesitate. Aucamp remarked that the party would join forces with anyone willing to improve service delivery in the country.

Source: Briefly News

Authors:
Mbalenhle Butale avatar

Mbalenhle Butale (Current Affairs writer) Mbalenhle Butale is a dedicated journalist with over three years newsroom experience. She has recently worked at Caxton News as a local reporter as well as reporting on science and technology focused news under SAASTA. With a strong background in research, interviewing and storytelling, she produces accurate, balanced and engaging content across print, digital and social platforms.