The African Development Bank (AfDB) has approved a $474.6 million loan to South Africa to help revamp the country’s ailing transport and energy infrastructure. This marks the second major infrastructure funding commitment to the nation in recent weeks.
The loan follows a $1.5 billion agreement with the World Bank last month aimed at supporting similar infrastructure development initiatives.
South Africa, widely considered Africa’s most advanced economy, has been hampered by over a decade of stalled growth, largely due to persistent electricity blackouts, deteriorating rail systems, and heavily congested ports. These issues have significantly impacted key industries such as mining and automotive manufacturing.
In a statement issued Tuesday, the AfDB said the new funding will support energy efficiency projects and rail sector reforms, among other priorities. The bank added that the financing is part of a broader international support package.
The full funding package includes:
- $1.5 billion from the World Bank
- €500 million ($590.75 million) from German development bank KfW
- Up to $200 million from the Japan International Cooperation Agency
- $150 million from the OPEC Fund for International Development
The comprehensive support is expected to help South Africa address long-standing infrastructure challenges and stimulate economic recovery.
