Finance Minister Enoch Godongwana said the programme reflects the government’s commitment to removing infrastructure constraints that have held back economic growth and job creation.
Image: GCIS
South Africa has again secured World Bank funding, this time a $1.5 billion (about R24.7 billion) loan to help improve the country’s infrastructure and support job creation.
According to the World Bank, the latest loan is the fourth in a series of development policy loans provided to South Africa since 2022.
It will support government reforms aimed at fixing challenges in electricity, freight transport, and water services, while helping attract more private investment into key infrastructure projects.
"Reforms supported by the new financing are expected to help create the equivalent of almost 600,000 more and better-paid jobs by 2032" the bank said.
The bank said most of the job gains are expected to come from reforms in the electricity and transport sectors, which could support about 280,000 jobs by 2027 and more than 560,000 by 2032.
Finance Minister Enoch Godongwana said the programme reflects the government’s commitment to removing infrastructure constraints that have held back economic growth and job creation.
"This program reflects our government's determination to remove the infrastructure constraints that have held back growth and job creation for too long," Godongwana said.
"Working with the World Bank Group, we are deepening reforms already delivering results in energy and transport, while for the first time tackling the governance and investment gaps in our water sector that affect millions of households, particularly the poorest."
World Bank Group Division Director for South Africa Satu Kahkonen said the country’s reforms showed that long-standing infrastructure challenges could be addressed.
"By extending this support to water and sanitation for the first time, we are helping ensure the benefits of reform reach every household, while these efforts together are expected to help create almost 600,000 jobs and attract much-needed private investment."
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