AfDB Approves $474.6M Loan to Boost South Africa’s Transport and Energy Sectors

The African Development Bank (AfDB) has approved a $474.6 million loan to South Africa to help upgrade its transport and energy infrastructure. This marks the second major infrastructure loan for the country in recent weeks, following a $1.5 billion agreement with the World Bank in June.

The AfDB’s financial support is aimed at enhancing energy efficiency and implementing critical rail sector reforms, the bank said in a statement on Tuesday.

South Africa, Africa’s most industrialized economy, has been grappling with persistent power outages, deteriorating railway networks, and heavily congested ports for over a decade. These issues have severely impacted key sectors such as mining and automobile manufacturing, stalling economic growth.

The AfDB loan is part of a broader international financing package to support South Africa’s infrastructure revival. Additional contributions include €500 million ($590.75 million) from German development bank KfW, up to $200 million from the Japan International Cooperation Agency (JICA), and $150 million from the OPEC Fund for International Development.

The combined effort signals a coordinated international commitment to revitalizing South Africa’s critical infrastructure and supporting long-term economic stability.