IFU Backs Critical Water Infrastructure in South Africa with SIDAFF Partnership
Deal News | May 20, 2025 | Investment Fund for Developing
IFU has entered into a grant agreement with the Western Cape Government's Sustainable Infrastructure Development and Financial Facility (SIDAFF) Programme to support municipal water projects in South Africa. Facing an imminent water crisis exacerbated by climate change, the country needs innovative solutions to improve water infrastructure. With a grant of up to DKK 14 million, facilitated by GreenCape Sector Development Agency, IFU aims to bolster intermediate-sized municipalities in the Western Cape. This initiative is supported by public partnerships and seeks to attract additional private sector funding, targeting at least DKK 600 million. The collaboration highlights the importance of strategic partnerships involving local stakeholders, embassies, and international entities to achieve significant social and economic impacts.
Sectors
- Water Infrastructure
- Public-Private Partnerships
Geography
- South Africa – The focus of the article is on South Africa, specifically the Western Cape, where the water infrastructure projects are being developed to address local water crises.
- Denmark – Denmark is significant as IFU is involved in the infrastructure projects, which aligns with Denmark's foreign policy and development objectives.
Industry
- Water Infrastructure – The article centers on the challenges and developments in water infrastructure in South Africa, emphasizing the need for sustainable projects to tackle the water crisis.
- Public-Private Partnerships – The involvement of IFU and SIDAFF, along with local and international partners, demonstrates a collaborative approach between public entities and private capital to develop essential infrastructure.
Financials
- DKK 14 million – Grant provided by IFU to the SIDAFF Programme for water infrastructure development.
- DKK 600 million – Targeted amount to be mobilized primarily from private sector investment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| IFU (Investment Fund for Developing Countries) | Private Equity Firm | Company | Danish investment fund supporting sustainable infrastructure projects. |
| Western Cape Government | Local Government | Government | The local governmental entity in charge of regional affairs, collaborating on the SIDAFF Programme. |
| SIDAFF Programme (Sustainable Infrastructure Development and Financial Facility) | Programme Developer | Company | A program aimed at developing critical municipal infrastructure projects in South Africa. |
| GreenCape Sector Development Agency | Implementing Partner | Company | A not-for-profit agency responsible for implementing the SIDAFF Programme. |
| Danish Embassy | Strategic Partner | Government | Supports cooperation and partnership between Denmark and South Africa. |
| Swiss State Secretariat for Economic Affairs (SECO) | Co-sponsor | Government | Supports economic cooperation and development projects. |
| French Development Agency (AFD) | Initial Funder | Government | Provided initial funding for the SIDAFF Programme. |
| Tina Kollerup Hansen | Senior Vice President of DSIF in IFU | Person | Executive overseeing public infrastructure and investment projects at IFU. |