South Africa has secured a $1.5 billion loan from the World Bank to support infrastructure reforms aimed at improving electricity supply, transport networks and water services while driving economic growth and job creation.
The funding, provided by the International Bank for Reconstruction and Development, will help the government tackle long-standing infrastructure challenges that have weighed on key sectors such as mining, manufacturing and exports.
According to the World Bank, the reform programme could support the creation of nearly 600,000 jobs, with many expected to come from improvements to electricity generation and freight transport.
National Treasury said the loan offers favourable interest rates and flexible repayment terms, helping to limit the country’s debt servicing costs. Together with funding from other multilateral lenders, it also enables government to meet its $3.2 billion foreign currency borrowing target for the 2026/27 financial year.
The loan is the fourth Development Policy Loan granted to South Africa since 2022 and forms part of broader efforts to improve service delivery, attract investment and modernise the country’s infrastructure.
Government hopes the reforms will ease persistent electricity shortages, improve the efficiency of rail and port operations, and strengthen water and sanitation services to support long-term economic recovery.
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