Johannesburg Secures R3.8 Billion KfW Loan for City Power as Satisfaction With Electricity Falls to 38%
Updated
Updated · The Conversation · Jun 23
Johannesburg Secures R3.8 Billion KfW Loan for City Power as Satisfaction With Electricity Falls to 38%
3 articles · Updated · The Conversation · Jun 23
Summary
R3.8 billion in concessional funding from Germany’s KfW will go to urgent City Power capital works, as Johannesburg tries to shore up a grid hit by repeated failures.
15 years is the loan term, with a five-year grace period before capital repayments start in 2031; the local-currency facility carries an 8.56% rate, below some earlier city borrowing above 11%.
R40 billion is City Power’s estimated infrastructure backlog, far beyond the new loan, after Johannesburg spent just 1% of its operating budget on maintenance in 2024/25 versus an 8% Treasury guideline.
38% of residents said they were satisfied with electricity services in 2023/24, down from 77% in 2017/18, while the city also faces more than R5 billion owed to Eskom and R5.7 billion in sales losses.
Short-term service gains are expected to be limited, with likely pressure for higher tariffs, billing fixes and action on informal connections as the city tries to restore credibility after years of weak oversight.