South Africa (SA) has received a USD 1.5 billion loan from the World Bank, to transition to a low carbon economy.
In a statement on Monday, the World Bank said the loan is to upgrade transportation infrastructure and help SA towards a low-carbon economy.
Enoch Gondongwana, Minister of Finance, said the loan will enable inclusive economic growth and job creation, and challenges facing the energy and transportation sectors.
“This agreement reinforces the strong and constructive collaboration between the World Bank and the government of South Africa. This partnership marks a significant step towards addressing South Africa’s pressing economic challenges of low growth and high unemployment.”
The country’s real gross domestic product (GDP) was revised from a projected 1.9 % in 2025 to 1.4.
Government debt is projected to at 77.4 per cent of GDP in 2025/26.