.jpg)
4 hours ago
1
Article content
(Bloomberg) — The World Bank has approved a $1.5 billion loan to support structural reforms aimed at boosting South Africa’s infrastructure.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The Washington-based lender said in a statement the operation will address the nation’s challenges of low growth and a high unemployment rate of almost 33% by easing constraints in its energy and freight transport sectors. Electricity outages caused by power generation prone to breakdowns has also curbed economic growth.
Article content
Article content
Article content
South Africa has vowed to modernize state-owned enterprises and open key sectors to competition to boost its economy. The bank said its program will enhance energy security, increase port and rail volumes and support the shift to a low-carbon economy.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“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.
Article content
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.
Article content
South Africa is moving toward a competitive electricity market following a century-old monopoly held by Eskom. The financing will support government plans to add 3,500 megawatts of renewable energy capacity by March 2027, along with private investment with the potential to add 200 kilometers (124 miles) of new transmission lines, according to a fact sheet on the development policy loan. Transnet reforms are expected to increase rail network capacity and enable the entry of private operators.
Article content
“South Africa’s macroeconomic framework is considered adequate for the operation,” the bank said. “The government remains committed to prudent fiscal policies and structural reforms.”
Article content
Sign up here for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.
Article content
(Updates with unemployment rate in second paragraph, other details)
Article content
English (US)