South Africa has signed a $1.5 billion loan agreement with the World Bank to overhaul its transport and energy infrastructure and boost economic growth.
The loan aims to ease transport bottlenecks and improve energy security, with more favorable terms than commercial borrowing, including a three-year grace period.
The financing will help limit rising debt-service costs and support growth, which rose just 0.1% in the first quarter.
The loan carries an interest rate of six-month Secured Overnight Financing Rate plus 1.49% and has a 16-year repayment term.
This agreement is part of a broader effort to unlock private investment in the electricity transmission grid and support growth through infrastructure development.
