AfDB to Loan South Africa $474.6 Million to Enhance Infrastructure & Green Growth
AfDB to Loan South Africa $474.6 Million to Enhance Infrastructure & Green Growth
The loan will support South Africa's Infrastructure Governance and Green Growth Program (IGGGP), part of a broader energy transition initiative, which could boost GDP by 0.2–0.4% annually from 2025 to 2030, the AfDB said.
"This approval represents more than financing — it's a blueprint for Africa's energy future," said AfDB director for Southern Africa Kennedy Mbekeani.
Key pillars of the IGGGP:
🟠enhancing energy security through power sector reform;
🟠supporting a just and low-carbon transition;
🟠improving transport efficiency.
The financing will include grants for energy efficiency initiatives and reforms in the rail sector to boost freight and logistics, according to the statement.
Energy shortages and transport bottlenecks have long hampered South Africa's economic growth and development goals, Finance Minister Enoch Godongwana noted, welcoming the support.
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