The World Bank has approved South Africa’s request for a $750 million (R11.4 billion) development policy loan.<\/p>\n
This loan will support the government’s efforts to accelerate its Covid-19 response aimed at protecting the poor and vulnerable from the adverse socio-economic impacts of the pandemic and supporting a resilient and sustainable economic recovery, Treasury said in a statement on Friday (21 January).<\/p>\n
“The World Bank budget support is coming at a critical time for us and will contribute towards addressing the financial gap stemming from additional spending in response to the Covid-19 crisis,” said Dondo Mogajane, director-general of the National Treasury.<\/p>\n
“It will assist in addressing the immediate challenge of financing critical health and social safety net programs to develop our economic reform agenda to build back better.”<\/p>\n
Treasury said the funding is a low-interest loan that will contribute to South Africa’s fiscal relief package. It follows support that has already been given by a number of international monetary groups, including the International Monetary Fund, the African Development Bank and the New Development Bank.<\/p>\n
As the second-largest economy in Africa, the World Bank noted that South Africa’s economic performance has spillover effects on other countries in the region. Its recovery and successful economic development will provide an economic boost to the whole region, it said.<\/p>\n
\nMEDIA STATEMENT ALERT: Media statement on the World Bank\u2019s Development Policy Loan to South Africa. @WorldBankAfrica<\/a> @GovernmentZA<\/a> pic.twitter.com\/J58zSjS3cv<\/a><\/p>\n
\u2014 National Treasury (@TreasuryRSA) January 21, 2022<\/a><\/p><\/blockquote>\n