South Africa borrowed $1.5 billion for infrastructure development
Eskom maintains grid stability amid rising winter demand, with emergency reserves deployed and key units returning to service ahead of a cold spell forecasted to grip much of the country.
Image: Timothy Barnard /Independent Newspapers
The World Bank has approved a $1.5 billion 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 modernize 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 SOC Ltd. to bolster the grid for renewable generation and Transnet SOC Ltd., South Africa’s port and rail company to increase freight transport capacity.