South Africa, World Bank Sign $1.5B Development Loan Agreement

South Africa has signed a Development Policy Loan Agreement with international financial institution the World Bank, mobilizing $1.5 billion to address challenges within the energy and freight transport sectors. The loan aims to modernize infrastructure across these sectors by supporting key structural reforms that boost efficiency, resilience and sustainability.

Covering 16 years with a three-year grace period, the loan is built on three strategic pillars: improving energy security, enhancing the efficiency and competitiveness of freight transport and supporting South Africa’s transition towards a low-carbon economy. Expected reforms are set to bolster job creation while driving economic growth through efficient energy and freight transport activities.

The financing is part of broader efforts by the government of South Africa to strengthen public institutions, crown-in private investment and improve service delivery across key sectors. Structural reform represents a cornerstone of this strategy.