South Africa’s government has secured a $1.5 billion loan from the World Bank to support the modernisation of the country’s infrastructure and create hundreds of thousands of jobs in Africa’s largest economy.
According to Bloomberg, which reported the development on Tuesday, 21 July, the financing represents the fourth standalone development policy loan extended to South Africa since 2022. It is designed to ease infrastructure constraints that have contributed to more than a decade of weak economic growth.
The Washington-based institution said that reforms in the electricity and transport sectors, underpinned by the loan, could generate approximately 600,000 new jobs by 2032, including 280,000 as early as next year.
“The operation builds on reforms that are already delivering results,” the World Bank said in a statement, adding that “scheduled power cuts have been virtually eliminated for a year and a half, private investment in renewable energy has increased sixfold, and freight volumes moved by rail and port have grown by more than 50% since 2023.”
Scheduled power interruptions — known locally as load shedding — have become markedly less frequent following years in which they occurred almost daily, owing to efforts to rehabilitate the state-owned electricity utility as part of a reform programme launched by President Cyril Ramaphosa.
According to a monitoring report compiled by business organisation Business Leadership South Africa, approximately 70% of priority projects have been completed or are on track according to the planned schedule.
“This programme reflects our government’s determination to remove the infrastructure constraints that have for too long held back economic growth and job creation,” Finance Minister Enoch Godongwana said in the statement.
“In partnership with the World Bank, we are deepening reforms that are already delivering results in the energy and transport sectors, while for the first time addressing governance and investment failures in the water sector that affect millions of households, especially the poorest,” he added.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/21/mundo/africa/africa-do-sul-governo-garante-emprestimo-de-15-mm-do-banco-mundial-para-modernizar-infra-estruturas/
