The World Bank has granted a $1.5 billion loan to South Africa to upgrade transportation infrastructure and help it transition to a low-carbon economy.
Pretoria plans to use the loan to address longstanding challenges in its energy and freight logistics sectors. State-run ports and rail company Transnet has struggled with inadequate operational facilities in recent years, stymying growth in Africa’s biggest economy.
Transnet’s problems have been compounded by the inefficiency of South Africa’s other major utility — the power company Eskom.
The World Bank loan will help to solve “pressing economic challenges of low growth and high unemployment,” South Africa’s Treasury said. The loan has been granted with a three-year grace period for repayment and “favorable interest rates,” it added, describing the terms as in line with the country’s goals of easing debt service costs.
