The African Development Bank (AfDB) has approved a significant $475 million loan to support South Africa’s Infrastructure Governance and Green Growth Programme.
The funding aims to modernise the country’s ageing transport networks, upgrade its energy systems, and advance its climate goals.
This financing is part of a wider international support package that includes a $1.5 billion loan from the World Bank, €500 million from Germany’s KfW, up to $200 million from Japan’s JICA, and $150 million from the OPEC Fund for International Development.
The AfDB loan will help fund three main priorities: upgrading rail, ports, and logistics vital to industries such as mining and automotive; implementing energy sector reforms to improve efficiency, reduce load shedding, and integrate more renewables; and supporting South Africa’s Just Energy Transition (JET) goals with low-carbon, climate-resilient infrastructure.
This multi-donor approach aims to restore investor confidence and tackle persistent bottlenecks that have hampered South Africa’s productivity. By aligning infrastructure upgrades with clean energy ambitions, the programme will strengthen the country’s resilience to climate risks and position it as a regional leader in green growth.
With this injection of capital, South Africa is taking another step towards securing reliable transport and energy systems that can unlock job creation, attract investment, and support inclusive economic development.
Source: Further Africa
