South Africa has secured a $1.5 billion loan from the World Bank to accelerate reforms in its struggling electricity, freight transport and water sectors, marking another major vote of confidence in the country’s efforts to rebuild its economy after years of infrastructure failures.
The financing, approved by the International Bank for Reconstruction and Development (IBRD), comes as Africa’s largest economy pushes ahead with structural reforms aimed at removing some of the biggest obstacles to investment, exports and job creation.
The World Bank said the programme could help enable nearly 600,000 jobs, with most expected to come from improvements in electricity generation and freight transport. Around 280,000 jobs could be supported by 2027, rising to more than 560,000 by 2032 as reforms gather pace.
The loan is the fourth stand-alone Development Policy Loan the World Bank has approved for South Africa since 2022, underscoring continued international backing for the country’s economic reform programme.
Unlike traditional infrastructure financing used to build roads or power plants, Development Policy Loans support government reforms designed to improve the performance of key sectors and attract private investment.
