The African Development Bank (AfDB) has approved a $474.6 million loan to help South Africa upgrade its transport and energy infrastructure.
The funding provides a major boost for the government’s infrastructure reform plans, which aim to improve public services, tackle energy shortages, and support long-term economic growth.
The loan, announced on Tuesday, is the second major infrastructure financing deal South Africa has secured in recent weeks, following a $1.5 billion agreement with the World Bank in June.
Together, these deals signal renewed confidence from global lenders in South Africa’s push to fix years of underinvestment and inefficiencies in key sectors.
The AfDB said its loan is part of a larger international financing package assembled to back South Africa’s reform efforts.
According to Reuters, this support includes a $1.5 billion loan from the World Bank, €500 million (about $590.75 million) from Germany’s KfW development bank, up to $200 million from the Japan International Cooperation Agency, and $150 million from the OPEC Fund for International Development.
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The funding will support South Africa’s Economic Reconstruction and Recovery Plan, which focuses on rebuilding infrastructure, boosting growth, and strengthening resilience against persistent challenges such as power cuts and logistics problems.
The National Treasury said on Monday that the country is working to overhaul its transport and energy networks to reignite economic expansion after more than a decade of slow growth.
Frequent blackouts, crumbling rail lines, and congested ports have disrupted sectors like mining and automotive manufacturing.
The AfDB loan comes at a critical time. Power utility Eskom continues to struggle with breakdowns and load shedding, while state-owned Transnet faces major rail failures and port delays that have hurt exports and business operations.
Years of poor management and financial troubles at both companies have played a central role in South Africa’s economic difficulties.
Officials see the AfDB’s support as more than just financial help.
They view it as a strong sign of international backing for the government’s reform plans.
Combined with loans from the World Bank and other multilateral lenders, the AfDB’s funding is expected to drive urgent upgrades, support restructuring efforts, and add momentum to South Africa’s goal of restoring infrastructure, stabilizing the economy, and building a more inclusive and resilient future.
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