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Home » World News » African Development Bank approves…
This article is about 5 months old


AFRICAN DEVELOPMENT BANK APPROVES $1B LOAN TO SOUTH AFRICA’S STATE-OWNED RAIL
AND PORTS COMPANY



The Associated Press

July 18, 2024, 9:15 AM

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CAPE TOWN, South Africa (AP) — The African Development Bank said Thursday it had
approved a $1 billion loan to…

CAPE TOWN, South Africa (AP) — The African Development Bank said Thursday it had
approved a $1 billion loan to South Africa’s state-owned rail and ports company,
Transnet.

The 25-year loan was wholly guaranteed by the South African government and will
help finance the first phase of a $8.1 billion investment plan for Transnet to
improve the country’s ailing rail and port infrastructure, the bank said.

South Africa has the most industrialized economy in Africa, but its
deteriorating rail and ports are seen as significant barriers to foreign
business investment and have strangled the efficiency of its export market.
Transnet is also one of several state-owned companies to previously come under
scrutiny for corruption and mismanagement.

In a statement released by the bank, Transnet Group chief executive Michelle
Phillips said the loan would make “a significant contribution to Transnet’s
capital investment plan to stabilize and improve the rail network and to
contribute to the broader South African economy.”

Boosting South Africa’s stagnant economy and reducing sky-high unemployment
levels has been a top priority for President Cyril Ramaphosa, whose African
National Congress party was punished by voters in an election in May when it
lost its 30-year majority and was forced to share power in a new coalition
government.

___

AP Africa news: https://apnews.com/hub/africa



Copyright © 2024 The Associated Press. All rights reserved. This material may
not be published, broadcast, written or redistributed.






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