World Bank Backs South Africa with US$1.5 Billion ...

World Bank Backs South Africa with US$1.5 Billion for Energy, Freight Overhaul

Oscar J Jeke, Zim Now Reporter

South Africa has secured a US$1.5 billion loan from the World Bank to support urgent infrastructure upgrades in the country’s energy and logistics sectors. The funding will be channelled toward strengthening the national power grid and expanding freight transport capacity through Transnet, the state-owned port and rail operator.

The loan forms part of broader efforts to stabilise South Africa’s struggling energy system and revitalize logistics networks that are key to economic growth. The support comes amid persistent power outages and freight delays that have disrupted industrial output and export competitiveness.

According to the World Bank, the financing will specifically help Eskom, the embattled state utility, enhance transmission capacity and improve grid resilience. Transnet is expected to use its portion to upgrade rail infrastructure and ease congestion at major ports.

The World Bank’s investment in South Africa is part of a wider regional strategy to boost energy access and support large-scale infrastructure transformation across the continent.

Meanwhile, the Bank also announced a US$1 billion commitment to the Democratic Republic of Congo for the revival of the long-delayed Inga III hydropower project, which could eventually become part of the world’s largest hydropower complex.

Of that commitment, an initial US$250 million will be released to fund technical studies, utility reforms, and investment mobilization for Inga III, which is projected to generate up to 11,000 megawatts—more than triple the DRC’s current installed capacity.

World Bank President Ajay Banga described the Bank’s support for Inga as a pillar of Mission 300, a bold initiative to connect 300 million Africans to electricity by 2030. Banga said Inga’s revival could unlock as much as US$85 billion in private investment and serve as a foundation for Africa’s green industrialization.

For South Africa, the US$1.5 billion loan signals growing international confidence in the government’s efforts to reform key state-owned enterprises, despite ongoing operational and financial challenges.

The World Bank said the infrastructure investments are essential to supporting South Africa’s economic recovery, improving energy security, and enhancing trade logistics in the Southern African region.