The funds will be directed towards enhancing energy security, improving port and rail operations, and supporting the transition to a low-carbon economy.

According to a statement from the World Bank, the loan is designed to tackle SA’s persistent economic challenges, including low growth and high unemployment.

The multilateral lender said the funding would help remove key bottlenecks in the energy and freight transport sectors, which have long hampered economic progress.

The loan will support Eskom’s efforts to strengthen the electricity grid in preparation for increased renewable energy capacity. It will also aid Transnet in expanding its freight transport services, particularly through rail and port systems, which have faced significant operational inefficiencies in recent years.

While Bloomberg confirmed the approval of the loan, a World Bank media liaison declined to share a public statement when requested.

The Bank emphasised that frequent breakdowns in electricity generation continue to restrict economic activity in SA. The injection of funding is expected to support interventions that stabilise the energy supply and enable the country to gradually reduce its dependence on carbon-intensive sources.

--Sherwin Bryce-Pease/ChannelAfrica--