A multi-million rand loan has been secured for Buffalo City's social and economic needs.

The municipality announced the R250-million loan, from the Development Bank of Southern Africa (DBSA), at the conference on the City Development Strategy in East London on Tuesday, 13 March.

Municipal manager Gaster Sharpley said that the loan would address the city's infrastructural challenges. "We want to use the loan to replace the ageing municipal fleet and develop, maintain and reconstruct municipal infrastructure for Buffalo City.

"We will also accelerate targeted infrastructure development programmes for previously disadvantaged communities in the township and rural areas of Buffalo City."

Of the loan amount, R90-million would go to municipal plant and fleet, including its fire and rescue vehicles; R110-million would go to the City's capital development programme; and R50-million would go to its targeted infrastructure programme, Sharpley said.

Oupa Mokwena, from the DBSA, said he was happy that the City had turned its attention to its people. "We are also thrilled to be part of this historic occasion. I would like to take this opportunity to pledge our support to the City and its people."

He was also happy that a portion of the loan would go towards incorporating the second economy into the mainstream economy. "This means that people from previously disadvantaged areas like Mdantsane and Duncan Village will also benefit [from] these developments."

The R250-million would kick start the municipality's three-year, R1-billion programmes to replace its ageing fleet and to implement infrastructure projects identified in the development strategy.

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