South Africa wins $1.5 billion World Bank infrastructure loan

The World Bank has approved a $1.5 billion (R26.6bn) loan to support structural reforms aimed at boosting South Africa’s infrastructure.

The Washington-based lender said in a statement the operation will address the nation’s challenges of low growth and high unemployment by easing constraints in its energy and freight transport sectors.

South Africa has vowed to modernise state-owned enterprises and open key sectors to competition to boost its moribund economy. The bank said its program will help by improving energy security, increasing freight transport efficiency and supporting the shift to a low-carbon economy.

“Our ongoing partnership with the World Bank will assist us to move forward with greater speed on the reforms vital to transforming our infrastructure landscape,” said Finance Minister Enoch Godongwana in the statement.

The loan will make available funds for state-owned Eskom Holdings to bolster the grid for renewable generation and Transnet, South Africa’s port and rail company to increase freight transport capacity.

BLOOMBERG