The City of Cape Town has formally signed a landmark grant agreement with the German Development Bank ‘KfW’, securing €15 million (approximately R300 million) to strengthen the early childhood development (ECD), improve regulatory compliance, and support violence prevention interventions in vulnerable communities across the city.
The agreement for the funding was officially signed by the Mayor Geordin Hill-Lewis during the Council recess, in terms of his executive authority. The funding, provided by the German Federal Ministry for Economic Cooperation and Development (BMZ) on behalf of the German Government and administered through KfW, forms part of a broader €27.5 million programme that aims at improving outcomes for young children, caregivers and families in selected high-need districts of Cape Town.
Deputy Mayor and Member of the Mayoral Committee for Spatial Planning and Environment – Alderman Eddie Andrews, welcomed the agreement and described it as a transformative investment in Cape Town’s future.
Andrews emphasised that this partnership with KfW is a strong vote of confidence in the financial governance of the city and its ability to responsibly manage large-scale international funding in the public interest.
This funding enables the city to strengthen early childhood development in vulnerable communities by improving safe and compliant ECD infrastructure. Also, it will support ECDs to meet regulatory requirements, by expanding outreach and practitioner training and reinforcing violence-prevention and referral support for children, caregivers and families.
Furthermore, the project will focus on selected districts and combine infrastructure investment with social development interventions to:
- strengthen ECD services,
- improve safety, and
- enhance institutional coordination
Alderman Andrews said that the programme is deliberately designed to address both physical and systemic barriers facing the ECD sector.
As per Andrews, too many ECD centres operate under difficult conditions that make compliance and sustainability challenging. This programme supports infrastructure upgrades, safer public spaces, professional training and regulatory alignment. It also ensures that ECDs can operate legally, safely and with dignity.
Considering this, Member of the Mayoral Committee for Community Services and Health – Councillor Francine Higham said that the quality of early childhood development plays a critical role in shaping long-term health, safety and social outcomes. This programme responds to real gaps at community level by strengthening frontline ECD services, improving access to support and referral pathways, and ensuring that children, caregivers and families receive the right assistance, at the right time and in the places where it is most needed.
Talking about the contribution and implementation by the City of Cape Town, then the €15 million grant, by the city will contribute infrastructure investment, operational and maintenance support. This initiative will also build on synergies with previous KfW-supported projects in Cape Town, including skills development and youth outreach programmes.
This agreement reflects a shared commitment between the city and the international partners to invest in prevention, opportunity and long-term resilience. It is a significant step forward for Cape Town’s ECD sector and for the thousands of children whose futures depend on it, said Andrews.