The World Bank has approved a USD1.5 billion infrastructure modernisation development policy loan to support South Africa’s structural reforms in energy and freight transport.
The initiative aims to address the country’s pressing energy reliability challenges and stimulate inclusive growth. The South African government has committed to modernise state-owned enterprises, and open the power and freight transport sectors to private sector competition. The loan supports this drive through three mutually reinforcing pillars: improving energy security by attracting investment in transmission, expanding grid access, and enhancing municipal distribution; increasing freight transport efficiency by establishing an independent economic regulator and unbundling state logistics company