final-alternative-and-blended-finance-framework-22.04.2025.pdf

Summary

This document presents the Western Cape Government's Alternative and Blended Finance Framework (ABF), establishing a cohesive strategy for departments to acquire capital beyond standard budget allocations. Motivated by severe fiscal constraints and the urgent need to expand critical infrastructure and public services, the WCG aims to mobilize private, philanthropic, and institutional financing alongside public funds. The framework offers thorough definitions of various blended finance instruments and guidelines for managing complex financing structures like Public-Private Partnerships (PPPs) and Outcome-Based Financing. Crucially, it details a robust, multi-year ABF project preparation and approval process that integrates seamlessly with the WCG’s annual budget cycle. Oversight is managed by new governance structures, including the PLCC and TPLCC, which ensure legal compliance and rigorous risk management and fiscal sustainability while aligning projects with core provincial strategies.