Treasury confirms signing of govt’s $1.5bn development policy loan with World Bank

The loan is expected to assist South Africa with implementing the necessary interventions aimed at advancing reforms in the electricity, freight and logistics sectors, and addressing challenges in the water and sanitation sector
Photo by Creamer Media
The South African government and the World Bank have signed a $1.5-billion Development Policy Loan Agreement aimed at supporting the country’s efforts to achieve inclusive growth by tackling infrastructure constraints, identified as the primary barrier to job creation.
This serves as the fourth development policy loan and continued partnership with the World Bank, aimed at addressing South Africa’s economic challenges of low growth and high unemployment, National Treasury notes in a statement.
The loan is expected to assist South Africa with implementing the necessary interventions aimed at advancing reforms in the electricity, freight and logistics sectors, and addressing challenges in the water and sanitation sector.
The financing forms part of the government’s broader efforts for continued momentum on structural reforms in the energy, logistics and water sectors, among others.
The loan support is anchored on three key pillars of structural reform, namely, strengthening energy competitiveness and security, upgrading freight transport services and delivering efficient water and sanitation services. These are reforms aimed at boosting economic growth and job creation.
The financing terms of the loan are in line with Treasury’s borrowing strategy that aims to ensure long-term debt sustainability and affordability by raising funding at the lowest cost.
Specifically, the loan offers both favourable interest rate and flexible repayment terms, aimed at minimising the rise in debt service costs.
This loan, combined with financing secured from other multilateral development partners, has enabled government to meet its 2026/27 foreign currency borrowing requirement of $3.2-billion.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
















