Zuko Komisa

The South African government and the World Bank have officially signed a $1.5 billion (approximately R26.5 billion) Development Policy Loan Agreement.
The move is aimed at resolving significant infrastructure challenges, particularly in the country’s energy and freight transport sectors.
According to a statement released by the National Treasury on Monday, 23 June, this loan is designed to support critical structural reforms that will boost the efficiency, resilience, and sustainability of South Africa’s infrastructure services.
The financial support is anchored by three key pillars: improving energy security, enhancing the efficiency and competitiveness of freight transport services, and supporting South Africa’s transition toward a low-carbon economy.
These reforms are considered crucial for fostering inclusive economic growth and creating jobs.
The National Treasury highlighted that this partnership signifies a major step in addressing South Africa’s pressing economic issues of low growth and high unemployment. They noted that the financing is part of the government’s broader efforts to implement structural reforms aimed at strengthening public institutions, attracting private investment, and improving service delivery across priority sectors.
The National Treasury expressed its gratitude to the World Bank for its ongoing partnership and support in advancing South Africa’s development objectives, emphasising that this agreement reinforces their strong and constructive collaboration.
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