The African Development Bank Group (AfDB) has approved a $1-billion corporate loan to Transnet for its recovery and growth plans.
- The 25-year loan is fully guaranteed by the South African government and will facilitate the first phase of Transnet’s $8.1-billion capital investment plan.
- Transnet faces operational challenges due to underinvestment, theft, vandalism, and external shocks.
- The recovery plan aims to rehabilitate infrastructure and accelerate operations over 18 months.
- AfDB’s partnership with Transnet will address operational inefficiencies and enhance national logistics capabilities.
- The loan will contribute to Transnet’s capital investment plan to stabilize and improve the rail network.
- Additional grant funding will support energy efficiency efforts and infrastructure project preparation initiatives.