By Staff Reporter
South Africa has signed off on a US$1.5 billion Development Policy Loan Agreement with the World Bank to support critical structural reforms to enhance the efficiency, resilience and sustainability of the country’s infrastructure services, the National Treasury said on Monday.
It said the partnership was a significant step towards addressing the country’s pressing economic challenges of low growth and high unemployment.
“The loan will help unlock key infrastructure bottlenecks, particularly in the energy and freight transport sectors, thereby enabling inclusive economic growth and fostering job creation,” the Treasury said in a statement on Monday.
South Africa has been struggling to grow due to load-shedding that has impeded productivity. At the same time, congested ports and a deteriorating rail network continue to frustrate major industries.
The Treasury said the financing formed part of the government’s broader efforts to implement structural reforms that strengthened public institutions, crowded in private
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