Cape Town eyes Germany's KfW to help finance R4bn projects

The City of Cape Town wants to borrow R4 billion (€242 million) over the next three years to fund its capital projects. One of the loans the city wants approved is an €80million (R1.3billion) loan from the German development bank KfW.

The projects earmarked by KfW funding include developments at the Cape Flats, Bellville, Mitchells Plain, Borcherds Quarry, Hout Bay, Gordon’s Bay and Zandvliet wastewater treatment plants. The indicative rate provided by KfW at September 28 was 8.41%, and if the management fee is included, an effective rate on this date will equate to 8.45%.

The intention is to draw down the loan in tranches, with the first tranche in January, the second tranche in May and the last tranche in November next year.