World Bank Boosts South Africa's Infrastructure with $1.5 Billion Loan

The World Bank has agreed to provide South Africa with a USD 1.5 billion loan, as announced by the National Treasury on Monday, to enhance transportation infrastructure and support the nation's shift toward a low-carbon economy.

South Africa has faced significant economic hurdles, including deteriorating rail systems, congested ports, and recurring blackouts, impacting key industries like mining and automotive production. This loan aligns with President Cyril Ramaphosa's commitment to improve governance and drive economic reforms to counter sluggish growth and soaring unemployment.

This financial injection is anticipated to resolve critical infrastructure bottlenecks in the energy and freight transport sectors, foster inclusive economic growth, and create jobs. Meanwhile, the real GDP projection for 2025 has been adjusted from 1.9% to 1.4% due to a bleak global outlook, although infrastructure developments remain a budget focus.

(With inputs from agencies.)