South Africa Secures R5.6bn From France and Germany To Fix Municipalities, Citizens Raise Concerns
- France and Germany approved a €300 million loan, equivalent to R5.6 billion, directed at South Africa's struggling metropolitan municipalities
- The Metro Trading Services Reform programme covers eight metros serving over 22 million residents, including Johannesburg
- South Africans expressed scepticism online about whether the funds will reach their intended purpose, or whether it would be looted
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Byron Pillay, a Briefly News journalist, has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online.
GAUTENG - France and Germany have jointly extended a €300 million loan, approximately R5.6 billion, to South Africa under a programme aimed at rehabilitating basic service delivery in major cities.
The funding is directed at the Metro Trading Services Reform (MTSR) programme, which targets eight metropolitan municipalities collectively home to more than 22 million residents. Johannesburg is among the cities included in the initiative.
What the loan will fund
The National Treasury has tied the financial health of these municipalities directly to South Africa's broader economic performance. The loan is intended to improve electricity distribution, water supply, sanitation infrastructure, and solid waste management across the targeted metros.
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Authorities say better-functioning services should free up resources for infrastructure reinvestment while reducing power outages and addressing long-standing backlogs.
Both France and Germany are channelling the funds through their respective Just Energy Transition (JET) mandates, which support the municipal components of South Africa's wider JET investment plan. It's not the first time the country has got a loan from France and Germany.
South Africans question the loan
The announcement attracted significant public scepticism on social media, with many questioning whether the money would reach its intended purpose.
Chris Jonker asked:
"Do they know a loan means it has to be paid back?"
Laurence Fregona wrote:
"Clearly those countries did not question why those services are not working."
Gerhard Nel cautioned:
"The next party to govern will not be in a position to repay all the loans."
Hein Siepker warned:
"The ANC is losing, so now they are going to pocket on a higher level. The other parties in the GNU must watch this incoming money with an eagle eye."
Francois M van Zyl questioned:
"Are France and Germany just ignorant of the corrupt ANC's looting?"
Paul Tladi simply noted:
"So many loans in 1 year."
European Union announced investment in South Africa
Briefly News reported that the European Union announced a €4.7-billion investment in South Africa in March 2025.
The Global Gateway Investment Package is to boost clean energy and vaccine manufacturing in South Africa.
Citizens were divided by the news, with some saying that the EU was making a big mistake by giving South Africa money.
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Source: Briefly News
