Looking back Moving forward AFD, 20 years of partnership in South Africa PIC T URE S BY C YRI L LE T OURNE UR D’ I SON
Beneficiaries of the Gcin'amanzi project talking about the installation of their repaid meters with engineers in Soweto.
Johannesburg
AFD has funded a loan to the private-sector Affordable Housing Company (Afhco) to develop innovative communal housing in Johannesburg, featuring independent units from 11m2 to 25m2 with shared sanitary and laundry facilities.
Affordable housing
Patrick Marula, building manager of the Atkinson House, Johannesburg.
Johannesburg
In South Africa, access to adequate housing is a constitutional right. AFD finances housing projects for low-income households that otherwise donâ&#x20AC;&#x2122;t have access to decent housing (monthly revenues <4,500 ZAR).
Lungile and Lebo, tenants, Atkinson House.
Johannesburg
AFD promotes an inclusive approach, locating or connecting such housing to nearby economic centers and social service facilities. Afhco is one of the private social housing institutions, active in Johannesburg since 1996 to foster the inner city rejuvenation process.
View from the Atkinson House, CBD, Johannesburg.
Durban
Waste management and reducing CO2 emissions
The Bisasar Road Landfill site, central waste disposal site for the eThekwini Municipality (Durban).
South Africa is a high energy intensity country, and it ranks among the top twenty nations for total greenhouse gas (GHG) emissions. The country has set a goal to reduce emissions by more than 40% by 2025. Waste accounts for 4% of the South African GHG emissions. Landfills are the most used waste treatment solution in South Africa but they have a very negative impact on the environment. Waste fermentation from landfills produces methane which is a major greenhouse gas.
Durban
AFD supported the eThekwini Municipality in the development of innovative technologies regarding waste management. This landfill gas-toelectricity project, the first in Africa, enables clean electricity generation and reduces the landfillsâ&#x20AC;&#x2122; impact on global warming. This project was the first one eligible for the Clean Development Mechanism (CDM) under the framework of the Kyoto protocol in South Africa. Marc Wright, project engineer for metro landfills and gas to electricity (eThekwini Municipality) working with employees on the Bisasar Road landfill site.
Durban
The project consists of collecting the methane produced by fermentation of waste in three landfills of household refuse (Mariannhill, Bisasar Road, La Mercy) in order to transform it into electricity. Over 20 years, the project reduces the emissions of the landfills by 6.8 million tons of CO2.
Installation of pipes for collecting the methane, Bisasar Road landfill site.
Cape Town
Municipalities play an essential role in reducing social inequalities. The City of Cape Town, 2nd economic centre of the country and 2nd most populous city, faces the same challenges as other big South-African cities. Substantial population growth, high unemployment and inequalities have spurred an ambitious investment programme.
Sustainable urban development
Flamingo crescent, informal settlement in Cape Town.
Cape Town
AFD supports South Africaâ&#x20AC;&#x2122;s sustainable urban-development policy, aiming to integrate townships and informal settlements. AFD provides loans directly to municipalities for infrastructure projects.
Installation of electricity, water and sewage systems in Flamingo crescent informal settlement.
Cape Town
AFD supports the City of Cape Town through a loan that finances part of the investment programme of the city and aims at supporting the implementation of the cityâ&#x20AC;&#x2122;s Integrated Development Plan for water and sanitation, electricity, human settlements, roads and transport.
Zelda, resident, Flamingo crescent informal settlement.
Cape Town
With more than 65 000 daily rail commuters in Cape Town’s CBD, the improvement and integration of urban rail services is essential to achieve the city’s “Vision of One”. AFD has allocated grant funding for Transport for Cape Town (TCT) to learn from international best practices in commuter rail management.
Integrated transport systems
Cape Town railway station during peak times.
Cape Town
AFD supports the Comprehensive Integrated Transport Plan 2013-2018 of the City of Cape Town and TCT “Vision of One”. TCT is a local government entity that is transforming Cape Town’s current fragmented transport system into an integrated, car-competitive, multi-modal system, resulting in more efficient, affordable and safer public transport. Capetonians queuing to access private minibus taxi transport service in the CBD.
Cape Town
Ultimately commuters will be able to cycle, use MyCiTi buses, Golden Arrow buses, take a train or mini bus taxis with a single ticket. Public transport integration also means the harmonization of timetables and fares across multiple public transport operators.
Schoolchildren at the mini bus taxi rank, Cape Town.
Soweto
In South Africa, municipalities have financial autonomy and are responsible for the local water supply systems. Johannesburg Water is a private company, wholly owned by Johannesburg Municipality, and is in charge of water supply services. AFD has granted loans to the municipality for the Gcin’amanzi project, “water conservation” in Zulu.
Improved access to public services
Lawrence Otiend, engineer consultant (Johannesburg Water) working on the project in Soweto.
Soweto
The Gcinâ&#x20AC;&#x2122;amanzi project consists of the rehabilitation of the water system and the installation of drinking water pipes in Soweto. The estimated consumption billing system has been replaced by prepaid meters. Out of a total objective of 12 000 prepaid meters, 5000 have already been installed.
Installation of drinking water pipes in Orlando West, Soweto.
Soweto
This project aims to improve the quality of service and to provide financially viable and sustainable drinking water and sanitation facilities in the Greater Soweto area (162,000 households). The Gcinâ&#x20AC;&#x2122;amanzi project also generated more than 1200 temporary jobs.
Beneficiaries of the project talking about the installation of their prepaid meters with engineers (Johannesburg Water).
Midvaal
AFD uses financial intermediaries to provide support to small and mediumsized municipalities for their basic infrastructure investments. The Development Bank of Southern Africa (DBSA), a long-time AFD partner, has received six loans from AFD. The Midvaal Local Municipality (Gauteng) benefited from long term funding provided by AFD through DBSA.
Supporting municipal finance
 Demonstration on Telemetry System by Surprise Letlhake, Acting Assistant Director â&#x20AC;&#x201C; Sanitation (Municipality of Midvaal).
Midvaal
AFD supported Midvaalâ&#x20AC;&#x2122;s 2009 capital investment program aiming to upgrade existing infrastructure and to provide new sanitation and road infrastructure. The project consisted of upgrading roads (gravel to tar) at Sicelo and other less developed urban areas. AFD funding also supported the installation of an electronic sewer and water monitoring system. Residents of Sicelo informal settlement, beneficiaries of the projet, Midvaal.
Midvaal
The construction of the new road improves living conditions of residents by reducing dust and air pollution and by facilitating storm water drainage. Since 1994, AFD has provided more than â&#x201A;Ź550 million (ZAR 7 billion) in financing to strengthen small, medium-sized and metropolitan municipalities in South Africa.
Women talking about the construction of the road in Sicelo informal settlement, Midvaal.
Cape Town
AFD supports South Africa’s objective to increase the share of renewables in its energy production and has made loans available to three South African financial institutions: Absa Bank, Industrial Development Corporation (IDC) and Nedbank. These institutions lend to privatesector companies to finance small energy-efficiency and renewable-energy projects.
Energy efficiency and renewable energy solutions
Sasko’s bakery, one of the country’s biggest bread suppliers, installed a biomass boiler in Cape Town.
Cape Town
Sustainable Heating is a heating solutions company that uses renewable energy sources to provide steam and helps its clients reduce their heating costs as well as their carbon footprint. They designed and installed a biomass boiler at Saskoâ&#x20AC;&#x2122;s bakery in Cape Town. Â This project was funded by the IDC through its partnership with AFD.
The Sustainable Heating boiler, designed by CEO Paul Gorresmans, will result in at least 18000 tons of carbon savings over the 15 years contract period.
Cape Town
The plant is a flagship project for the Western Capeâ&#x20AC;&#x2122;s 110% Green campaign, which is trying to position the province as a hub of green economic activity. This renewable-energy project has potential to be replicated in other parts of South Africa.
The biomass boiler re-uses wood shavings to produce steam.
Villiersdorp
In a country battling to meet its burgeoning demands for electricity and one that boasts more than 2,500 hours of sunshine every year, Arbeitsvreudg Fruit Packers decided to install a rooftop solar photovoltaic system designed by RED engineering. This project was funded by ABSA Bank through its partnership with AFD.
Solar photovoltaic installation at Arbeitsvreudg , a fruit packing and cold storage facility in Villiersdorp, Western Cape.
Villiersdorp
Since the inauguration of the installation, Arbeitsvreudg exports its fresh fruits in a more economical and environmentally friendly way. The company leaves a lesser carbon footprint and saves about ZAR 80 000-90Â 000 on its electricity bill each month.
Lukas Wentzel, financial manager at Arbeitsvreudg Fruit Packers.
Villiersdorp
Arbeitsvreudg Fruit Packersâ&#x20AC;&#x2122; warehouse.
All the projects financed through the green credit line, aim at contributing to the development of renewable and energy efficient markets by providing financial incentives and opportunities of capacity building to the banks. AFD has provided more than â&#x201A;Ź500 million (ZAR 6,2 billion) in financing to foster the energy transition and support the development of renewables in South Africa over the past 10 years.