The National Treasury has released a statement indicating that South Africa has signed loan agreements with the World Bank, the German government, and the African Development Bank (AfDB).
The loans are provided below market rates, to support the country’s Just Energy transition.
The World Bank will provide a R1 billion loan for a duration of 15 years, the German government, half a billion euros for 12 years, and the AfDB $300 000 for 12 years.
The loans will be provided directly to the National Treasury for general budget expenditure purposes, although ultimately the funds are provided to help ensure the country’s better transition to a low-carbon, climate-resilient economy.
The Treasury says taking on these favourable loans helps to mitigate the country’s growing debt profile.
STATEMENT: The National Treasury on loan agreement:
