World Bank grants South Africa a $1.5B loan for infrastructure upgrade and green energy transition
The World Bank granted South Africa a $1.5 billion loan to upgrade transportation infrastructure and help it transition toward a low-carbon economy, the country's National Treasury said Monday.
Deteriorating rail systems, jammed ports and frequent blackouts have hindered vital industries like mining and auto manufacturing in South Africa, contributing to slow economic growth over the last decade in Africa's most developed economy.
South African President Cyril Ramaphosa and his coalition government have pledged to tackle corruption and decades of poor management as well as pursue reforms to get the country out of its economic rut and ease its extremely high unemployment rate.
While it did not give specifics, the South African government said it expects the World Bank loan will enable inclusive economic growth and job creation by assisting in the removal of important infrastructure bottlenecks, especially in the energy and freight transportation sectors.
'This agreement reinforces the strong and constructive collaboration between the World Bank and the government of South Africa,' said the National Treasury. 'This partnership marks a significant step toward addressing South Africa's pressing economic challenges of low growth and high unemployment."
Additionally, because the financing has better conditions than conventional borrowing, such as a three-year grace period, it should reduce escalating debt-service expenses, it added.
South Africa's 2025-26 budget has allocated over R1 trillion over the next three years toward critical transportation, energy, water and sanitation infrastructure while improving access to basic services.
However, real gross domestic product was revised downward to 1.4% in 2025 from 1.9% previously projected by the Finance Ministry projected in March because of the worsening global outlook and the persistence of logistics constraints and higher borrowing costs.
Finance Minister Enoch Godongwana said government debt is projected to stabilize at 77.4% of GDP in 2025/26.
Earlier this year, the dismantling of USAID by the Trump administration cut around $436 million in annual funding to South Africa for HIV treatment and prevention, putting the program and thousands of health care jobs on the line.
Godongwana said the country doesn't have the funds to cover the more than $430 million shortfall caused by the Trump administration's cuts in foreign aid, which have threatened the vast network of support for one of the world's largest HIV-positive populations.
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BBC News
3 hours ago
- BBC News
Cape Town gangs wey dey recruit small-small children into di gangs
Di father wey still dey in shock lie down on one small single bed and e point to two bullet holes for di wall of im house. Dis na clear evidence of di moment wey destroy im family life forever. Dem shoot Devon Africa four-year-old son, Davin, for February, e bin dey di middle of one crossfire shoot-out between criminals. E be victim of di gang warfare wey dey disturb Cape Flats, di towns around Cape Town – di area na legacy of apartheid, wen dem force non-white population comot from di centre of di wealthy city go di under-resourced outskirts. "Dis na di bullet hole here," e tok. "Dis na wia e sleep." Di family bin already don endure unspeakable horror. Davin older sister, Kelly Amber, die two years earlier, dem shoot am too as rivals fire gun at each oda. She be 12. Now, na only one pikin remain for Devon and im wife, Undean, dia youngest daughter. "She ask me: 'Wia my brother dey?" Undean tok. "So I tell her say e dey wit Jesus for daddy heart and for my heart." These murders happun for one area known as Wesbank, but many oda families across di wider Cape Flats area don at one time endure similar nightmares, despite assurances by di police say dem go increase patrols. Di numbers tell horrifying story. Di Western Cape province – wia di Cape Flats dey - consistently see majority of gang-related murders for South Africa, according to di police. Officially, dis na policing priority for di government. President Cyril Ramaphosa set up one special unit to fight gang violence for 2018, e also briefly deploy army to di area di following year, but di problem no stop, and di killings continue. "Whole history and generations of pipo wey dem born into these gangs dey," Gareth Newham, head of di Justice and Violence Prevention programme for di Institute for Security Studies for Johannesburg. "[Dem] flourish for areas wey di state don abandon or areas wey dey underdeveloped. Di gangs dey provide a form of social structure wey dey provide services to di communities wey di state no dey do anytin for. Dem dey provide food for homes. Money for electricity. Money for transport or funerals. These gangs even dey pay school fees." Dem dey among di pipo for di community and "dat na why e dey very difficult for di police to tackle dem… e mean say dem fit use non-gang members' houses to store drugs and store weapons". But pipo dey wey dey try tackle di issue. Fifteen kilometres (nine miles) away from Wesbank na Hanover Park wia Pastor Craven Engel dey glued to im mobile phone almost all day, every day in im quest for peace. Im mission na to mediate in gang conflicts to stop dis violence and di killings, wey profitable trade in drugs dey ginger. Im and im team dey try follow one basic formula: detection, interruption and changing mindsets. "Hanover Park no really get any economy to tok of," Pastor Engel. "Most of di economy na from di drug culture. Dat na di biggest economy." Pastor Engel say dem no fit overlook di impact of di apartheid for di area but neither can generational trauma - manifested as drug addiction and then family breakdown. "Di substance [drug] create unemployment, di substance create robbery, e create gang fights sake of turfs. So, di substance dey di middle of so many of di atrocities within di community," Pastor Engel tok. E estimate say around 70% of local children wey dey there dey live wit some kind of addiction. Dis community of around 50,000 pipo gatz endure shootings and stabbings almost daily. And most time, na young pipo dey do di killing and na dem dey die. "Di policing approach alone no fit solve di problem bicos you fit arrest pipo bicos dem be members of di members, for having guns and for shootings and murders. Dem go go prison, but then, younger members go replace dem. And dat dey create a whole different set of problems. E dey likely say dem go get into fights ova territory and turf," Mr Newham tok. "How dem dey shoot pikin seven times for head or three times for im back? How stray bullet take dey hit pikin?" Pastor Engel ask. On im phone, e call community leaders and gang kingpins, wey dey constantly try to reduce di violence. Wen BBC Africa Eye visit am, e bin dey try broker one ceasefire between two warring gangs - and e bin manage to reach di jailed leader of one of dem. "If I want something to happun then e go happun. You understand pastor?" di gang boss tok for phone. "But I fit tell you one thing. I be pesin wey like to fight back if I come under fire." Threats. Even from behind bars. But Pastor Engel no dey give up. E dey highly visible for im community, weda for di house of a parishioner or bifor im large and loud congregation for di pulpit on a Sunday. "I think wetin make am dey very, very terrible now now na say more children dey involved for di gangs, bicos di gangs dey recruit between diages of eight and 15 years old," e tok. Di programme e dey run bin dey receive government money, but di funds no dey again. To cut off di supply lines and protect di innocent, e go meet victims and perpetrators anywhere and at any time. E dey also send rehabilitated gang members to negotiate directly wit warring factions. Those wey dey live on di edge of death know how important e dey to push for peace instead. Glenn Hans na one such person. E dey meet wit rival gangs to convince dem to honour a ceasefire. "I bin also dey dis game. As long as you make decision say you wan be better pesin. Dat's all," e tell one group of gang members. One of dem get chilling response: "Di more we kill, di more ground we seize and di more ground we get, di more we fit build. So, for me to speak about peace - I no fit make dat kain decision bicos no be my decision to ensure peace." Di ceasefire wey dem eventually agree on bin last just for few days, shattered by di killing of two pipo for one drive-by shooting. But some pipo wey don dey deep inside di conflict don get enough. Fernando - or Nando - Johnston dey part of one gang called di Mongrels, and e dey try find way out wit di help of Pastor Engel. Di pastor describe Mr Johnston as young pesin dem "born into di gang" since im whole family dey involved. "For dis game na only two options dey – na either you go jail or you die, " Oga Johnston tok. "I really wan change direction and I believe say way out always dey. Dat na di reason I approach di pastor - to ask am if plan or way dey to take me." E go join one six- to 12-week programme of rehabilitation wey di pastor dey run and wey charitable donations dey fund wey dey designed to get pipo off drugs and into work. "Di thing na you fit now start to dey build yourself up again," Pastor Engel tell am. "You go fit get job and make money for yourself. Then you no go need hustle and scavenge around here anymore." "I ready to go, pastor," Johnston tok as e ready to leave im battered and scarred community in search of a new path. Pipo wey close to am don gada to wish am well. Im mother, Angeline April, hold back her tears, desperate say, dis time, her son go choose life. "Please just make di best of dis opportunity, Nando," she tok. "Yes mummy, I always make di best of a situation." "Fernando papa na gangster but my oda children papa na gentleman," Mr Johnston mama tok. "But bicos e be gangster, di children also chook body for gangsterism despite say I constantly dey warn dem. E no easy to raise four boys on my own, you know. I always dey encourage am to change, bicos I love am well-well." And so far so good for Mr Johnston. Two weeks afta e start di programme, e still dey there. "Nando dey stabilize. E dey for works programme. E dey see im family, e dey see im children. We allow am go house and e come back and we test am and no find drugs for im system," Pastor Engel tok. Hope na rare commodity for here, but sometimes e dey spring through di cracks for di streets wey don see so much trauma. No be all streets, though. Very little hope dey found at Devon Africa and Undean Koopman house, wey siddon for di middle of battlefield. Di cycle of killings and retaliation wey don hit di area wey dey di edges of dis beautiful South African city dey overwhelming for many of those wey just dey struggle to survive. And those caught in the middle often gatz make impossible choices. "Community members, even if dem dey opposed to di gangs, are not necessarily pro-police for two reasons," Mr Newham tok. "One na say dem no know if police go come if dem call dem. And if dem call di police, dem no know if di police officers dey corrupt. Pipo no understand di scale of di challenge for South Africa." Sentiments reflected by di peacemakers on di frontlines for dis war. "Nobody go come from anywhere to help or save us. Not from overseas. Not from our local government. Nobody go come wit magic wand to cure di Cape Flats," Pastor Engel tok. "As individuals we gatz dey determined to build up resilience, create hope for our pipo and grow. Bicos politics clearly don fail us."
BBC News
4 hours ago
- BBC News
What does the new Industial Strategy mean for Scotland?
Nearly a year since winning an election landslide, and struggling to respond to public impatience for change, some of the Labour government's key policies have been published this key one was the Spending Review for the next three years of day-to-day expenditure and four years of capital with that, and dependent on it, are reviews of defence and infrastructure, the latter having not much to do with Industrial Strategy is the latest, and it does affect Scotland, perhaps quite significantly. So what is it all about, and what could that effect be?The idea of an industrial strategy is for government to support industries of strategic importance, which it needs to retain, such as defence, and those that offer the best hopes for growth and jobs. Let's leave aside the history of governments trying to intervene in the market and support British industry. It's not an impressive saga - due to backing the wrong options, supporting declining industries at great cost, or failing to do enough for those showing most promise. And in doing so, there hasn't been much of a consistent future, according to the new industrial strategy, is about championing eight sectors - for support, reducing some costs (primarily energy), boosting trade, optimising the market, getting obstacles out the way, and getting enough recruits in place with the necessary in government jargon as the IS-8, these include clean energy (that means renewables and nuclear), advanced manufacturing, digital and technology, defence, life sciences, the creative sector, financial services and professional and business economy has an interest in energy-intensive industries seeing their bills cut by quarter - around 7,000 firms making, for instance, steel, chemicals, cars, glass, ceramics and cement. But it's not the main outcome for Scotland could be in the sweet spot for other elements of this strategy across all the sectors targeted for support, if all the published strategy's intentions get followed up, and if UK and Scottish governments can collaborate on joined-up policy. There's defence, including naval shipbuilding on the Clyde and Forth and missiles and radar in and around Edinburgh. Clydeside has a world-leading role in making small satellites. There's finance, in which Edinburgh and Glasgow jointly represent an important cluster for remains a lot of petro-chemicals going on at creative industries include Dundee's gaming and Edinburgh's universities around Scotland punch above their weight, notably on life sciences, spinning out digital and technology firms, and playing a big part in attracting international strategy brings a reminder of a Spending Review commitment to reinstate £750m of funds for a super-computer in Edinburgh. Clean energy Clean energy is the one worth watching most closely. It has the potential to transform much of the Scottish economy as well as the view out to sea and across the landscape where more pylons will requires co-operation from the Scottish government on faster planning, on which there's already some agreement, and the new strategy aims at an accelerated route to grid connections for growth the north of Scotland is set to produce much of the wind resource, there is an incentive to locate the most energy-intensive industries close to that resource, thus reducing the need for all those part of that is set to be the Acorn project of carbon capture and storage, centred on centres could be a feature, as well as making hydrogen energy from Scotland's abundant wind power and fresh may be strategic sites chosen, most likely by competition, to get government backing for clearance and pre-emptive grid links. Co-ordinating policy between Holyrood and Westminster is more likely to founder on nuclear energy, at least so long as the SNP runs the show in has opposed new nuclear power for decades, which hasn't been much of an issue while Torness and Hunterston have generated through their changing. The move to smaller, modular nuclear reactors could be part of the energy mix in Scotland, which is why the Scottish Labour leader, Anas Sarwar, chose the Industrial Strategy launch day to visit Torness power station in East Lothian and point to the jobs and investment that could come from the Scottish government embracing a new generation of nuclear a point of difference between Labour and the SNP, and enthuses industrial trade unions. But the SNP can point to the relatively high cost of nuclear power and to its very long legacy of radioactive SNP government also has a party policy of urging defence industries to diversify to more peaceful products. Labour has also taken aim at that, in an era of fast-increasing defence spend and opportunity to see that grow the Spending Review promised six munitions factories, always available to back up Britain's defence needs. Scotland could hope to secure one of them, but that might require a change of heart in Holyrood, to embrace the business of making UK industrial strategy calls for Scotland to have a growth fund for defence. You can probably see how all this might play into next year's Holyrood ought to be easier progress to made through collaboration on skills, mostly devolved to Holyrood but with signs that Westminster wants to do more on Holyrood's turf. Oil and gas skills On training, the strategy has been met with warnings from the oil and gas sector, including its training body are pointing to the gap between declining jobs for those with oil and gas skills and the rise in employment for those in renewable energy. That strategy requires joined-up government as well. And with Whitehall's hostility to further oil and gas drilling, the energy lobby argues that it doesn't look very also a big decision yet to come with big implications for investment in offshore wind due "shortly" from the UK government - whether to change the single GB market for power to one with zonal prices. That could cut prices in Scotland, but at the expense of hostile responses have come from those sectors that don't gain from this strategy. If government picks winners and priority sectors, it relegates others or it makes of the strongest criticism is from hospitality, with its trade body saying today that this shows the government once again failing to realise the damage being done to the industry, following rampant price inflation, higher payroll tax and a higher minimum the Scottish government comes the response that parts of this were already in the innovation strategy set out more than three years ago by Deputy First Minister Kate Forbes. She is concerned that energy price cuts for industry won't happen for two less welcome parts will require Holyrood ministers to have a closer look at the detail and the implications - economic and political.
The Independent
4 hours ago
- The Independent
World Bank grants South Africa a $1.5B loan for infrastructure upgrade and green energy transition
The World Bank granted South Africa a $1.5 billion loan to upgrade transportation infrastructure and help it transition toward a low-carbon economy, the country's National Treasury said Monday. Deteriorating rail systems, jammed ports and frequent blackouts have hindered vital industries like mining and auto manufacturing in South Africa, contributing to slow economic growth over the last decade in Africa's most developed economy. South African President Cyril Ramaphosa and his coalition government have pledged to tackle corruption and decades of poor management as well as pursue reforms to get the country out of its economic rut and ease its extremely high unemployment rate. While it did not give specifics, the South African government said it expects the World Bank loan will enable inclusive economic growth and job creation by assisting in the removal of important infrastructure bottlenecks, especially in the energy and freight transportation sectors. 'This agreement reinforces the strong and constructive collaboration between the World Bank and the government of South Africa,' said the National Treasury. 'This partnership marks a significant step toward addressing South Africa's pressing economic challenges of low growth and high unemployment." Additionally, because the financing has better conditions than conventional borrowing, such as a three-year grace period, it should reduce escalating debt-service expenses, it added. South Africa's 2025-26 budget has allocated over R1 trillion over the next three years toward critical transportation, energy, water and sanitation infrastructure while improving access to basic services. However, real gross domestic product was revised downward to 1.4% in 2025 from 1.9% previously projected by the Finance Ministry projected in March because of the worsening global outlook and the persistence of logistics constraints and higher borrowing costs. Finance Minister Enoch Godongwana said government debt is projected to stabilize at 77.4% of GDP in 2025/26. Earlier this year, the dismantling of USAID by the Trump administration cut around $436 million in annual funding to South Africa for HIV treatment and prevention, putting the program and thousands of health care jobs on the line. Godongwana said the country doesn't have the funds to cover the more than $430 million shortfall caused by the Trump administration's cuts in foreign aid, which have threatened the vast network of support for one of the world's largest HIV-positive populations. ___
