Cape Town: The South African government has announced a US$1.5 billion Development Policy Loan Agreement with the World Bank, aimed at addressing infrastructure challenges in the country. The loan is intended to enhance inclusive economic growth and job creation.

According to South African Government News Agency, Minister in the Presidency Khumbudzo Ntshavheni highlighted during a post-Cabinet media briefing that the loan aligns with National Treasury’s principles. The funds will focus on unlocking key infrastructure bottlenecks, particularly in the energy and freight transport sectors.

The National Treasury had previously announced the loan agreement, emphasizing its role in facilitating structural reforms. The loan is anchored on three pillars: improving energy security, enhancing the efficiency and competitiveness of freight transport services, and supporting South Africa’s transition towards a low-carbon economy. These pillars are central to the government’s goal of fostering inclusive growth and job creation.

In addition to the loan agreement, Cabinet has welcomed the launch of the South African Renewable Energy Masterplan (SAREM), which aims to drive localized manufacturing, skills development, and job creation. Approved in March, SAREM is designed to support local demand for renewable energy and promote industrial development while ensuring a just energy transition.

Moreover, Cabinet has acknowledged the arrival of vaccines from Botswana to combat the foot and mouth disease outbreak in certain areas of the country. The vaccines are being distributed and administered free of charge, particularly in KwaZulu-Natal and other affected regions. A second batch of vaccines is expected to be sourced from the Botswana Vaccine Institute.