The new $1.5-billion loan from International Bank for Reconstruction and Development (IBRD) to South Africa, the fourth stand-alone Development Policy Loan to the country since 2022, aims to support reforms in the country’s water and sanitation sectors, alongside supporting continued reforms in electricity and freight transport.
Water and sanitation reforms are not expected to directly create large numbers of jobs, as major users such as agriculture and mining already rely on alternative sources, but they are projected to bring concrete improvements for millions of households, including less time spent collecting water, lower health risks and better access for the poorest female-headed households, global finance institution the World Bank Group says.
In water and sanitation, the programme strengthens regulatory oversight, opens the door to private water service providers, and gives the newly established National Water Resources Infrastructure Agency greater autonomy to invest in bulk water infrastructure.
Additional key reforms supported by the operation include the launch of a competitive wholesale electricity market and scaled-up private investment in transmission, with a target of 300 000 new household electricity connections by December 2027.
