The African Development Bank has approved ZAR 18.85 billion ($1 billion) loan to Transnet, South Africa’s major freight and logistics company, for its recovery and growth plans.
In addition to the 25-year Ioan, the bank is working on two other grants, one technical to support the Sustainable Energy Fund from Africa, estimated at $750,000 to improve energy efficiency and associated measures.
Another, $1 million from the Infrastructure Project Preparation Facility of the New Partnership, for Africa’s Development for technical assistance to help accelerate railway reforms and address structural and regulatory inefficiencies.
Michelle Phillips, Group Chief Executive of Transnet SOC Ltd, said “we appreciate the support demonstrated by the African Development Bank, the loan extended by the bank will make a significant contribution to Transnet’s capital investment plan to stabilise and improve the rail network and to contribute to the broader South African economy. The accompanying grant funding to the loan will also greatly assist Transnet with its energy efficiency efforts and with Infrastructure Project Preparation initiatives.”
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