South Africa signs $1.5bn World Bank loan for infrastructure development

Containers filled with goods are seen stacked on top of one another at the port in Cape Town, South Africa, 15 March 2008. - Copyright © africanews Copyright 2008 AP. All rights reserved. Last updated: 3 hours ago South Africa South Africa has secured a $1.5 billion World Bank loan to support ​reforms aimed modernising its infrastructure and creating hundreds of thousands of jobs. It will help the country confront chronic challenges in electricity supply, freight transport, and water and sanitation services that have long constrained economic growth. The International Bank for Reconstruction and Development loan is the fourth in a series of stand-alone Development Policy Loans to South Africa since 2022. It comes as the government intensifies efforts to remove key infrastructure bottlenecks, improve service delivery, and stimulate investment across critical sectors of the economy. The National Treasury says the loan offers a favourable interest rate and flexible repayment terms, contributing to minimising an increase in debt servicing costs. It adds that together with financing from other multilateral lenders, the loan has ​enabled the ​ government to meet its 2026/27 foreign currency borrowing requirement ​of $3.2 billion. The World Bank said the programme could help enable nearly 600,000 jobs, with most expected to come from improvements in electricity generation and freight transport. Persistent electricity shortages, congestion at ports and rail networks, and deteriorating municipal water infrastructure have constrained mining, manufacturing, and exports. You may also like