The Infrastructure Governance Reform Programme builds on budget support provided to SA since 2023, bringing the Bank’s total financing for related reforms to more than $1.2 billion. “This operation sits squarely on the Bank’s Four Cardinal Points,” African Development Bank Group Director-General for Southern Africa Kennedy Mbekeani said.
“It crowds private capital into transmission and rolling stock, strengthens the institutions that let SA finance infrastructure on its own terms, targets the jobs a young population needs and builds infrastructure that can stand climate pressure.”
The Bank provided $300 million through the 2023 Energy Governance and Climate Resilience Support Programme.
The programme supported the restructuring of Eskom, establishment of the National Transmission Company SA and greater private-sector participation in renewable energy.
Another $474.5 million was provided through the 2025 Infrastructure Governance and Green Growth Programme.
The financing supported electricity-market reforms, renewable-energy integration, improved distribution efficiency and changes to the transport sector.
The latest programme is being implemented through a development-partner framework led by National Treasury.
The electricity reforms seek to move Eskom away from being the sole buyer and seller of electricity.
The National Energy Regulator of SA has issued a market-operator licence to the operator housed within the National Transmission Company South Africa.
The regulator has also approved rules determining access to grid capacity and established a unit to monitor competition.
The wholesale electricity market is expected to account for 10% of transactions by December 2027.
In freight rail, the Transnet Rail Infrastructure Manager is allocating train paths across 21 232 kilometres of track.
At least 11 slots across six corridors were awarded to private train operators in August 2025.
The regulator is expected to approve at least six new private rail and port operators by December 2027, while annual rail-freight volumes are targeted to increase from 161 million tonnes to 180 million tonnes.
SA also signed a 25-year concession for Durban Container Terminal Pier 2 in December 2025.
The terminal handles 46% of the country’s containers, with capacity expected to increase from 2 million to 2.8 million twenty-foot equivalent units by 2028.
Annual investment in rolling stock is targeted to triple to approximately $360 million.
The Bank said the reforms were expected to deliver shorter truck queues at the Port of Durban, more reliable water services and competitively priced electricity.
–AfDB/ChannelAfrica–
