The South African government has secured a US$1.5 billion Development Policy Loan from the World Bank to advance infrastructure reforms across key sectors, including electricity, freight logistics, water, and sanitation.

This funding aims to address systemic challenges hindering job creation and economic growth, with reforms expected to enhance competitiveness and foster inclusive development.The 15-year loan, featuring a three-year grace period and an interest rate of SOFR plus 1.35%, aligns with the government's strategy to maintain debt sustainability while meeting its US$3.2 billion foreign currency borrowing target for 2026/27.

Treasury emphasized that these reforms are critical for laying foundations for long-term growth, particularly in energy, logistics, and water sectors.

The partnership underscores the World Bank's role in supporting South Africa's structural transformation efforts, with both parties acknowledging the importance of sustained collaboration to achieve development goals.