The World Bank, Germany and the African Development Bank have agreed to provide $1.9 billion in funding for South Africa’s Just Energy Transition plan as the country scrambles to overcome power shortages that have curtailed economic growth in the past two years.
South Africa’s National Treasury said the concessional loans will enable it to raise other funding at affordable rates and would also be used in funding its reforms. The World Bank is providing $1 billion while the AfDB will give $300 million dollars with Germany’s KfW bank lending $547 million.
The loans “…are in line with the National Treasury’s funding strategy to diversify its funding mix for international borrowing and access concessional financing instruments offered by the development partners to support government’s key reforms under climate change and the electricity sector,’’ the government said in a statement. “ These facilities also enable the National Treasury to raise funding at very affordable rates which help to reduce the government public debt.’’
Source: CNBC
