Finance Minister Enoch Godongwana and his deputy David Masondo. Treasury said the loan, together with funding secured from other multilateral development partners, has allowed government to meet its $3.2bn foreign currency borrowing requirement for the 2026/27 financial year.
South Africa has secured a $1.5 billion (about R27 billion) Development Policy Loan from the World Bank to support structural reforms aimed at improving electricity supply, freight logistics and water infrastructure, as government seeks to lift economic growth and create jobs.
The loan agreement, signed between the National Treasury and the World Bank, marks the fourth development policy loan between the two parties and forms part of government's broader programme to address infrastructure bottlenecks that have weighed on economic performance for years.
National Treasury on Tuesday said the financing would support reforms in the electricity, freight and logistics, and water and sanitation sectors, which it described as critical to unlocking inclusive growth and reducing unemployment.
"The loan will help South Africa implement necessary interventions and reforms aimed at advancing reforms in the electricity, freight and logistics sectors, and addressing pressing challenges in the water and sanitation sector," Treasury said in a statement.
