The World Bank Group has advanced a new $1.5 billion (nearly R25 billion) Development Policy Loan to South Africa to support economic reforms that are expected to create almost 600,000 jobs by 2032.
This is the fourth Development Policy Loan South Africa has secured from the global financial institution since 2022.
It is the first that supports reforms in the water and sanitation sector. It also adds further support for electricity and freight transport reforms.
"This programme reflects our government's determination to remove the infrastructure constraints that have held back growth and job creation for too long," said Finance Minister Enoch Godongwana in a statement.
"Working with the World Bank Group, we are deepening reforms already delivering results in energy and transport, while for the first time tackling the governance and investment gaps in our water sector that affect millions of households, particularly the poorest."
Since 2020, the government has implemented a series of economic reforms dubbed Operation Vulindlela.
According to the World Bank, results include the virtual end of load shedding, a sixfold increase in renewable energy investments and a 50% rise in rail and port freight volumes since 2023.
The loan has a 15-year maturity, a three-year grace period and an interest rate of the six-month Secured Overnight Financing Rate (SOFR) plus 1.35%, National Treasury said.
It added that the terms are concessional, enabling the government to stabilise debt-servicing costs associated with expensive market borrowing.
The World Bank Group has advanced a new $1.5 billion (nearly R25 billion) Development Policy Loan to South Africa to support economic reforms that are expected to create almost 600,000 jobs by 2032.
This is the fourth Development Policy Loan South Africa has secured from the global financial institution since 2022.
It is the first that supports reforms in the water and sanitation sector. It also adds further support for electricity and freight transport reforms.
"This programme reflects our government's determination to remove the infrastructure constraints that have held back growth and job creation for too long," said Finance Minister Enoch Godongwana in a statement.
"Working with the World Bank Group, we are deepening reforms already delivering results in energy and transport, while for the first time tackling the governance and investment gaps in our water sector that affect millions of households, particularly the poorest."
Since 2020, the government has implemented a series of economic reforms dubbed Operation Vulindlela.
According to the World Bank, results include the virtual end of load shedding, a sixfold increase in renewable energy investments and a 50% rise in rail and port freight volumes since 2023.
The loan has a 15-year maturity, a three-year grace period and an interest rate of the six-month Secured Overnight Financing Rate (SOFR) plus 1.35%, National Treasury said.
It added that the terms are concessional, enabling the government to stabilise debt-servicing costs associated with expensive market borrowing.
