<\/p>\n
The financing, provided through the International Bank for Reconstruction and Development (IBRD), is the fourth stand-alone Development Policy Loan extended to SA since 2022.<\/p>\n
<\/p>\n
According to the World Bank, the reforms supported by the programme could help create almost 600 000 direct and indirect jobs by 2032 through their broader impact on economic growth and investment.<\/p>\n
<\/p>\n
The operation builds on reforms that have already delivered tangible results. Load shedding has been virtually eliminated for the past 18 months, private investment in renewable energy has increased sixfold, and freight volumes through rail and ports have risen by more than 50% since 2023.<\/p>\n
<\/p>\n
For the first time, the programme extends support to the water and sanitation sector alongside ongoing reforms in electricity and freight transport.<\/p>\n
Key measures include the launch of a competitive wholesale electricity market and expanded private investment in transmission infrastructure. The reforms aim to facilitate 300 000 new household electricity connections by December 2027.<\/p>\n
In the freight sector, the programme supports increased competition among private rail operators and includes SA’s first port terminal concession in Durban.<\/p>\n
The water and sanitation component focuses on strengthening regulation, expanding opportunities for private-sector participation in water services and providing greater autonomy to the National Water Resources Infrastructure Agency to invest in bulk water infrastructure.<\/p>\n
Most of the projected job creation is expected to come from reforms in the electricity and transport sectors. Together, these reforms are projected to support around 280 000 jobs by 2027, rising to more than 560 000 jobs by 2032.<\/p>\n
The World Bank said improved efficiency and greater private investment in energy, rail and port infrastructure would lower business costs, stimulate economic activity and support employment across multiple industries.<\/p>\n
While water and sanitation reforms are not expected to generate large numbers of jobs directly, they are expected to improve access to services for millions of households, reduce health risks and ease the burden of water collection, particularly for poorer female-headed households.<\/p>\n
Finance Minister Enoch Godongwana said the programme reflects government’s commitment to addressing infrastructure bottlenecks. “This program reflects our government’s determination to remove the infrastructure constraints that have held back growth and job creation for too long.”<\/p>\n
Godongwana added: “Working with the World Bank Group, we are deepening reforms already delivering results in energy and transport, while for the first time tackling the governance and investment gaps in our water sector that affect millions of households, particularly the poorest.”<\/p>\n
World Bank Group Division Director for SA Satu Kahkonen said the reforms demonstrate the benefits of sustained policy implementation. “SA has shown that sustained reform can turn around even deep-seated infrastructure crises.”<\/p>\n
Kahkonen added: “By extending this support to water and sanitation for the first time, we are helping ensure the benefits of reform reach every household, while these efforts together are expected to help create almost 600 000 jobs and attract much-needed private investment.”<\/p>\n
The programme was prepared in collaboration with development partners including Germany, Japan, the Organisation of the Petroleum Exporting Countries Fund and the African Development Bank.<\/p>\n
–World Bank\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":39857,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-39852","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"The World Bank has approved a $1.5 billion loan to support South Africa's (SA) efforts to modernise critical infrastructure and address long-standing constraints in electricity, transport, water and sanitation services.","published_date":"","news_description":"The World Bank has approved a $1.5 billion loan to support South Africa's (SA) efforts to modernise critical infrastructure and address long-standing constraints in electricity, transport, water and sanitation services.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39852\/revisions"}],"predecessor-version":[{"id":39860,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39852\/revisions\/39860"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/39857"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=39852"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=39852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}