Catalysing sustainable waste management and clean energy generation through blended finance partnerships
Johannesburg, 9 October 2025 –The Infrastructure Fund, a blended finance platform created through a partnership between the Development Bank of Southern Africa (DBSA), National Treasury and Infrastructure South Africa, has secured a R550 million grant from Invest International to support the implementation of the City of Johannesburg’s Alternative Waste Treatment Technology (AWTT) Project.
Valued at approximately R5.7 billion, the AWTT Project marks a significant milestone in South Africa’s transition towards sustainable waste management and renewable energy. Implemented through a public-private partnership (PPP) between the Infrastructure Fund, the City of Johannesburg (CoJ) and the private sector, the project aims to divert at least 500 000 tonnes of municipal solid waste per annum - or 31 per cent of Johannesburg’s total annual waste - from landfill sites.
Transforming Waste into Clean Energy
The project will comprise a dirty Materials Recovery Facility (dMRF) and a Waste-to-Energy (WtE) facility that will be designed, built, financed, operated and maintained by a private-sector partner over a 25-year concession period. Ownership of the facilities will ultimately revert to the CoJ at the end of the agreement.
Through the conversion of residual waste to energy, the project will generate approximately 28 megawatts (MW) of electricity — enough to power 60 000 households — while enabling the recovery and recycling of 175 000 tonnes of waste each year. This initiative will extend the lifespan of existing landfill sites, reduce methane emissions, and align the city’s operations with international environmental and emissions standards.
Catalysing Sustainable Urban Development
The AWTT Project represents a strategic step for both the City and the country in adopting circular-economy principles and climate-resilient waste management solutions. The blended-finance model demonstrates how public- and private-sector collaboration can deliver large-scale infrastructure off municipal balance sheets, unlocking both economic and environmental value.
The R550 million grant from Invest International will assist the City in fast-tracking project implementation, improving affordability through reduced gate fees, and advancing the initiative to the procurement phase to appoint a preferred bidder.
“The Infrastructure Fund continues to demonstrate how innovative financing structures can address municipal infrastructure challenges at scale,” said Mohale Rakgate, Chief Investment Officer: Infrastructure Fund. “This project not only supports Johannesburg’s waste management and energy needs but also illustrates how blended finance can unlock transformative, sustainable solutions for South Africa’s cities. As the Infrastructure Fund in partnership with the DBSA’s Project Preparation Division, we continue to work with our partners across South Africa in finding sustainable solutions that serve generations to come”
“The City of Johannesburg appreciates this funding millstone from Invest International, as it will assist the City in promoting waste hierarchy through waste recycling; extend the life of the existing landfills by diverting municipal solid waste away to a waste energy facility and in the process, comply with Conference of Parties (COP) 27 Emissions standards and objectives and most importantly generate energy for the residents of the City,” stated City of Johannesburg Mayor Dada Morero.
“The Kingdom of the Netherlands is proud to be able to contribute to the sustainable economic development of South Africa, specifically the City of Johannesburg through this flagship project using a Grant, implemented on behalf of the Ministry for Foreign Trade and Development Cooperation of the Netherlands through Invest International,” said Minister of Foreign Trade and Development Cooperation Aukje de Vries
A Model for Other Municipalities
Lessons from the AWTT Project are expected to inform similar initiatives in other municipalities facing waste-management constraints. It serves as a model for leveraging concessional funding, private-sector participation and innovative finance to deliver critical infrastructure within fiscal limits.
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About DBSA
The Development Bank of Southern Africa is one of the leading development financial institutions on the continent. Our primary purpose is delivering impactful development finance solutions that ignite transformative change in South Africa and on the rest of the African continent. Improving the quality of life of people in Africa is the fundamental focus of our development impact. We aim to bend the arc of history towards shared prosperity through multifaceted investments in sustainable infrastructure and human capacity.
Our product solutions span all phases of the infrastructure development value chain from infrastructure planning and project preparation, across a range of financing and non-financing investments to infrastructure implementation and delivery. Our primary areas of focus include Energy, ICT, Transport, Water and Sanitation. Our secondary area of focus includes Education, Housing and Health.
About Infrastructure Fund
The Infrastructure Fund announced by South African President Ramaphosa in 2018, addresses the need for blended finance to enable the efficient execution of socio-economic infrastructure programmes and projects in South Africa. The aim of the Infrastructure Fund is to transform public infrastructure through bespoke blended financing solutions by sourcing and blending capital from the private sector, institutional investors, development finance institutions and multilateral development banks.
The Infrastructure Fund is currently housed within the Development Bank of Southern Africa (DBSA). The Infrastructure Fund’s mandate has been captured in a tripartite Memorandum of Agreement signed in August 2020 by National Treasury, the Department of Public Works and Infrastructure: Infrastructure South Africa (ISA) and the DBSA.