In an exciting leap forward for sustainable development, the Western Cape Government is advancing a groundbreaking financing initiative known as the Sustainable Infrastructure Development and Financial Facility (SIDAFF) Programme. Announced by Anton Bredell, the Western Cape Minister for Local Government, Environmental Affairs, and Development Planning, this initiative aims to secure both local and international funding for vital municipal water and wastewater infrastructure projects.
During a recent ceremonial signing event, various partners reaffirmed their commitment to the next phase of this innovative program. Minister Bredell highlighted the selection of high-performing non-metro municipalities, including Drakenstein, Stellenbosch, Overstrand, Mossel Bay, Swartland, Breede Valley, George, and Saldanha Bay, as key players in this transformative endeavor. Notably, an initial cohort of 17 water and wastewater projects, with a staggering estimated value exceeding R2.2 billion, is currently undergoing prefeasibility assessments.
An impressive R72 million has already been secured in grant funding from the Swiss State Secretariat for Economic Affairs (SEC), while an additional R35 million has come from the DANIDA Sustainable Infrastructure Finance (DSIF), a division of the Investment Fund for Developing Countries (IFU). Minister Bredell expressed gratitude for these contributions, stating, “These financial commitments are moving us toward the R110 million needed to advance these projects from feasibility to bankability.” The support of the French Development Agency and Green Cape has also been instrumental in successfully completing earlier phases of the SIDAFF Programme.
The unique design of the SIDAFF facility allows for the aggregation of projects from multiple municipalities into a cohesive portfolio, opening doors to investments from prominent international funding institutions that typically shy away from smaller-scale initiatives. “By blending local and international finance, grants, and donor funds, the SIDAFF facility will introduce much-needed additional funding into crucial municipal water and wastewater infrastructure,” Minister Bredell explained.
As South Africa faces rising challenges related to water security and quality, particularly due to climate change, rapid population growth, and increased strain on existing resources, the SIDAFF Programme aims to tackle these issues head-on. “Our population growth is intensifying pressure on already limited water resources, and outdated wastewater systems are exacting a toll on our environment,” the Minister added.
Looking to the future, Bredell envisions scaling the SIDAFF Programme to encompass all municipalities in the Western Cape, contingent upon their adherence to prudent financial management criteria. A dedicated municipal special-purpose vehicle will be established to facilitate this transition, fostering greater financial independence while ensuring continued oversight from the Provincial Government to maintain investor confidence.
This initiative not only signifies a step towards enhanced water infrastructure in the Western Cape but also serves as a model for sustainable development that may inspire similar efforts across Africa.
