Johannesburg

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The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved a ZAR 2.5 billion (approximately $139 million) corporate loan to the City of Johannesburg Metropolitan Municipality, marking the Bank's first direct lending to a subnational entity in Africa.  

The transaction will finance critical infrastructure projects in electricity, water, sanitation, and solid waste management, directly benefiting over 6 million residents in South Africa's economic powerhouse. 

The approval marks a transformative moment for municipal financing across Africa, operationalizing the African Development Bank's Guidelines for Subnational Finance for the first time. The funding will exclusively support trading services infrastructure that generates revenue, ensuring sustainable debt repayment, while addressing urgent challenges in service delivery. 

“This landmark transaction, led by the African Development Bank's Infrastructure and Urban Development Department, in coordination with the Water and Sanitation Department,  and the Power Department, signals a new era in how the African Development Bank can empower cities,” said the Bank's Vice President for Private Sector, Infrastructure & Industrialization, Solomon Quaynor. “By directly financing Johannesburg, we are unlocking a scalable model for subnational lending that enables multi-sectoral infrastructure delivery and positions the Bank as a trusted partner in driving sustainable, inclusive urban development across Africa.” 

The loan will finance over 100 carefully selected projects across four vital sectors: upgrading distribution networks, installing smart meters, expanding renewable energy capacity, and connecting 3,200 new households to the grid; rehabilitating aging pipelines, upgrading treatment facilities, and reducing water losses from 46% to 37%;  and improving landfill compliance, expanding recycling facilities, and enhancing waste collection services. 

“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 City of Johannesburg faces significant infrastructure challenges, with annual electricity losses of 30% for the past three years and water losses of 46.1%. The project is expected to create 2,869 jobs during construction and substantially improve service reliability for millions of residents. 

An additional $1.5 million grant through the Bank's Urban and Municipal Development Fund is being sought to support municipal reforms, governance and climate-resilient planning initiatives. 

Beyond infrastructure improvements, the project will deliver significant socioeconomic benefits:  

• 592 full-time equivalent jobs, with 14% reserved for women and 23% for youth. 
• Reduced electricity and water interruptions will boost productivity for 65% of electricity and 5% of water consumed by industry. 
•  Enhanced free basic services for 160,000 indigent households.  
• ZAR 500 million in contracts earmarked for small and medium enterprises, with 40% reserved for women-owned businesses and 50% for youth entrepreneurs. 

The African Development Bank has included comprehensive safeguards in the project to assure robust monitoring and oversight, transparency, compliance, and sound financial management throughout the loan lifecycle. 

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact: 
Emeka Anuforo
Communication and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states.

For more information: www.AfDB.org

• Smarter Mobility Africa summit is a product of VUKA Group (www.WeAreVuka.com)

The South African National Taxi Council (SANTACO) has been announced as an official Association Partner for the Smarter Mobility Africa (SMA) summit 2025, taking place from 30 September to 3 October 2025 at the Sandton Convention Centre in Johannesburg.

This strategic partnership positions SANTACO at the forefront of continental discussions on smarter mobility solutions, with a particular focus on advancing public transport and accelerating the transition to new energy vehicles (NEVs) across South Africa and the broader African continent.

As the largest mover of people in South Africa, the taxi industry plays a pivotal role in the country's transport ecosystem. SANTACO's participation in SMA 2025 underscores the organisation's commitment to mobility leadership, industry transformation, and innovative transport solutions that serve millions of South Africans daily.

Leading the Conversation on Smarter Mobility

SANTACO President Motlhabane Abnar Tsebe will deliver a keynote address on 1 October 2025, representing the voice of the public transport sector and outlining the organisation's vision for a cleaner, more efficient mobility future. President Tsebe will also participate in key roundtable discussions alongside government officials, NEV experts, and global mobility innovators.

Secretary General Daki Qumbu will join President Tsebe as part of SANTACO's VIP delegation, engaging with stakeholders to build trust and cooperation between government, operators, and the private sector.

Driving Policy and Innovation

The partnership enables SANTACO to actively influence NEV policy frameworks and funding mechanisms, ensuring that the taxi industry's unique needs and challenges are considered in South Africa's transition to sustainable transport. This collaborative approach is essential for creating inclusive mobility solutions that work for all South Africans.

Speaking about the industry's transformation potential, President Tsebe emphasised the importance of changing perceptions through action. "If we formalise, professionalise, and invest in our people," he says, "then this industry can finally be seen for what it already is: the backbone of South Africa's mobility system."

"We are proud to welcome SANTACO as our Association Partner for SMA 2025," said Olivia Modisakeng, Event Manager. "Their leadership in transforming public transport is essential to building an inclusive and sustainable mobility future for Africa."

About the Partnership

SANTACO's involvement in SMA 2025 demonstrates the organisation's progressive stance on cleaner mobility and infrastructure development. The partnership creates opportunities for meaningful dialogue between industry leaders, policymakers, and technology innovators, fostering the collaborative relationships necessary to drive meaningful change in Africa's transport sector.

The Smarter Mobility Africa summit 2025 brings together key stakeholders from across the continent to address the most pressing challenges and opportunities in mobility, with SANTACO's participation ensuring that the voice of South Africa's public transport sector remains central to these critical conversations.

Distributed by APO Group on behalf of Vuka Group.

Additional information:
Full article on SANTACO: https://apo-opa.co/4kdpje1
Official event page: https://apo-opa.co/44qTyrX

For more information about SANTACO's participation in SMA 2025, please contact:
General Media Enquiries
mobilitymarketing@wearevuka.com

About SANTACO:
The South African National Taxi Council (SANTACO) is the leading representative body for the taxi industry in South Africa, serving millions of passengers daily and playing a crucial role in the country's public transport system.

About Smarter Mobility Africa Summit 2025:
The Smarter Mobility Africa summit is the continent's premier gathering for advancing public transport and transitioning to new energy vehicles (NEVs), bringing together government officials, industry leaders, and technology innovators to shape the future of African mobility.

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