World Bank approves R26 billion loan to boost South Africa's infrastructure and job creation
The World Bank has approved a $1.5 billion (R26 billion) loan to support South Africa's key reforms
Image: Armand Hough / Independent Newspapers
World Bank has approved a $1.5 billion (R26 billion) loan to support South Africa's key reforms aimed at making the country's infrastructure more efficient and sustainable.
According to the bank, the loan will address South Africa's twin economic challenges of low growth and high unemployment by easing infrastructure constraints in the energy and freight transport sectors.
Earlier this year, IOL reported that the International Monetary Fund (IMF) has revised its forecast for South Africa's economic growth in 2025, lowering it from 1.5% to 1%.
The government has also committed to modernising state-owned enterprises and introducing private sector competition in the power and freight transport sectors, with the goal of attracting new technologies and investment.
The bank said the loan supports this effort by improving energy supply, making freight transport more efficient, and helping South Africa move toward a low-carbon economy while protecting communities affected by the changes.
Finance Minister Enoch Godongwana said the "loan represents another important milestone in our government's commitment to transforming South Africa's infrastructure into a more efficient, competitive, and sustainable foundation for growth".
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"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," Godongwana said
Satu Kahkonen, World Bank Division Director for South Africa said the reforms could create up to half a million jobs by the early 2030s and are key to attracting investment and improving services
'The World Bank supports these reforms which tackle longstanding bottlenecks and have the potential to create 250 000 jobs by 2027 and about half a million jobs by the early 2030s. They are essential for attracting investment and enhancing public service delivery,' said
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