AfDB Approves $1 Billion Loan for South Africa's Transnet

The African Development Bank has approved a $1 billion loan for South Africa's state-owned ports and rail operator, Transnet, to aid in its recovery plan and infrastructure expansion. Transnet has struggled with equipment shortages and maintenance backlogs, impacting sectors like manufacturing and weakening the economy. The loan, fully guaranteed by the South African government, will fund the initial phase of Transnet's capital investment plan to enhance capacity and restore profitability within 18 months. This support is crucial for addressing operational inefficiencies, particularly in rail and port services, to bolster South Africa's freight system and regional connectivity.