The World Bank has approved a $1.5 billion loan to South Africa to support the program of structural reforms to boost the country's infrastructure. The announcement was made on Monday, June 9, 2025. This operation takes place in a context of low economic growth and high unemployment, estimated at nearly 33%.

According to a statement issued in Washington, the funds will be used to modernize the electricity grid, integrate more renewable generation capacity and open the electricity market to competition, ending the historical monopoly of Eskom, which will also take advantage of this support to strengthen its electricity network to competition, ending the historic monopoly of Eskom, which will also take advantage of this support to strengthen its network of renewable energy production. The loan will also be used to improve the country's logistical performance through investments in Transnet, the public operator of ports and rail freight

Enoch Godongwana, South African Finance Minister, hailed the facility as an accelerator for critical economic reforms. He reaffirmed Pretoria's commitment to maintaining strict fiscal discipline and continuing its energy transition strategy

“Our continued partnership with the World Bank will help us move faster on reforms that are critical to transforming our infrastructure landscape,” he added.

According to the World Bank, the South African macroeconomic framework remains adequate, despite rising public debt and limited fiscal space. Although the country is facing some budgetary difficulties, its economy is considered stable enough to benefit from this financing.

This loan is part of a package of financial support granted by the World Bank to South Africa since 2022, for a total of 3.25 billion USD.