Zuko Komisa

A R18.85 billion ($1 billion) corporate loan has been authorized by the African Development Bank Group for Transnet’s recovery and growth plans.
The African Development Bank Group’s Board of Directors approved the 25-year loan on July 12, 2024.
“The accompanying grant funding to the loan will also greatly assist Transnet with its energy efficiency efforts and with Infrastructure Project Preparation initiatives,”
Group Chief Executive of Transnet Michelle Phillips
According to Transnet, the loan will enable the company to carry out the first part of its five-year capital investment plan, valued at R152.8 billion ($8. 1 billion), which aims to improve current capacity before expanding to serve important sectors of the transport value chain.
Operating obstacles for Transnet have mostly come from underinvestment in equipment and infrastructure, theft and vandalism, and exogenous shocks like floods and the COVID-19 epidemic. These issues have affected the company’s vital rail and port industries.
The operations of the Transnet’s freight system make a substantial economic contribution to South Africa. and through the Port of Durban, its activities act as important entry points for trade with landlocked nations in the area, including Botswana, Zambia, Zimbabwe, and the Democratic Republic of the Congo.
“The company is committed to addressing past challenges, fostering integrity, and enhancing efficiency within the organization. It has made progress in some key areas, including reforms in governance procurement and financial management,”
a joint statement by Transnet and the African Development Bank
[Media Statement] The African Development Bank Group has approved a R18.85 billion ($1 billion) corporate loan to Transnet, South Africa’s major freight transport and logistics company, for its recovery and growth plans.
— Transnet SOC Ltd (@follow_transnet) July 18, 2024
The 25-year loan approved by the Bank Group’s Board of… pic.twitter.com/mRiHJJyJ4s



