The loan has been at the centre of controversy for several weeks and was rejected at a previous council meeting earlier this month.
The City of Johannesburg has agreed to loan R2.5-billion from the French development Agency (AFD).
ActionSA voted with the ANC and AIC, ATM, EFF and PA in passing a resolution to approve the loan. The Good Party and Freedom Front Plus voted against it.
The loan has been at the centre of controversy for several weeks. It was rejected at a previous council meeting earlier this month.
As reported by Business Day, the loan was initially turned down because Joburg finance MMC and ANC Joburg chair Dada Morero did not provide key details on the loan.
The cost of the loan was also raised as a serious concern.
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