SOUTH AFRICA: The African Development Bank has approved a US$1bn corporate loan to support national rail, port and logistics company Transnet’s business recovery plan, and is considering two targeted grants.
The 25-year government-guaranteed loan approved on July 12 will facilitate the first phase of Transnet’s US$8·1bn five-year capital investment plan, which aims to improve its existing capacity ahead of future growth.
AfDB is also considering providing a US$0·75m technical support grant to improve energy efficiency, and a US$1m grant to accelerate railway reform and address structural and regulatory inefficiencies.
AfDB said Transnet had faced operational challenges resulting from underinvestment in infrastructure and equipment, theft and vandalism, as well as external factors such as floods and the effects of the pandemic. However, it is now committed to addressing these issues, and has made progress with governance, procurement and financial management reform.
‘Our partnership will enable Transnet to execute a comprehensive recovery plan, addressing operational inefficiencies, particularly in rail and port sectors’, said AfBD Vice-President for Private Sector, Infrastructure & Industrialisation Solomon Quaynor on July 18. ‘This initiative signifies our commitment to enhancing national logistics capabilities and driving sustainable economic growth.’
