The African Development Bank (AfDB) has approved a $474.6 million loan to South Africa to boost its deteriorating transport and energy infrastructure, the bank announced on Tuesday. This marks the second major infrastructure loan secured by the country in recent weeks, following a $1.5 billion agreement with the World Bank in June.
South Africa, often referred to as Africa’s most advanced economy, has long struggled with infrastructure challenges that have severely hampered economic growth. Years of persistent power outages, dysfunctional rail networks, and congested ports have taken a toll on key sectors such as mining and automotive manufacturing.
According to a statement by the AfDB, the loan will support reforms aimed at improving energy efficiency and modernising the country’s rail system. These efforts form part of a broader international financing package aimed at revitalising South Africa’s ailing infrastructure.
In addition to the AfDB’s loan and the World Bank’s support, the financing package includes €500 million (approximately $590.75 million) from the German development bank KfW, up to $200 million from the Japan International Cooperation Agency, and $150 million from the OPEC Fund for International Development.
The coordinated investment is expected to address some of the country’s most pressing infrastructure bottlenecks, restore investor confidence, and lay the foundation for long-term economic recovery.
Melissa Enoch
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