Govt signs R30bn loan agreement with World Bank
The government and the World Bank have signed a R30 billion development policy loan agreement to support critical structural reforms.
Improved infrastructure is seen as key to addressing South Africa’s sluggish economic growth and high unemployment.
“The loan will help unlock key infrastructure bottlenecks, particularly in the energy and freight transport sectors, thereby enabling inclusive economic growth and fostering job creation,” National Treasury said in a statement on Monday.
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“The loan support is anchored on three key pillars of structural reform: Improving energy security, enhancing the efficiency and competitiveness of freight transport services, and supporting South Africa’s transition toward a low-carbon economy. These reforms are critical enablers of inclusive growth and job creation.”
Treasury added that the loan offers both favourable interest rates and flexible repayment terms, which minimise the debt service costs increase.
It has allocated about R1 trillion over three years for infrastructure spending.
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