Boost or Burden?
South Africa has obtained a R26.5 billion loan from the World Bank to support infrastructure development. The funding will be used to upgrade Eskom’s electricity network, aid the integration of renewable energy, and improve Transnet’s rail and port systems.
This follows a 2024 World Bank loan connected to Eskom’s restructuring, as well as a separate R18.85 billion loan from the African Development Bank allocated to Transnet.The loan is being presented as an important measure to support economic recovery and implement structural reforms.
However, with debt servicing already accounting for 20% of the national budget, experts warn that careful monitoring and accountability are essential to prevent the mismanagement seen in the past.
