The World Bank has approved a $1.5 billion (R26 billion) loan to support structural reforms aimed at boosting South Africa\u2019s infrastructure.<\/p>\n\n\n\n
The Washington-based lender said in a statement the operation will address the nation\u2019s challenges of low growth and a high unemployment rate of almost 33% by easing constraints in its energy and freight transport sectors. <\/p>\n\n\n\n
Electricity outages caused by power generation prone to breakdowns has also curbed economic growth.\u00a0<\/p>\n\n\n\n
South Africa has vowed to modernize state-owned enterprises and open key sectors to competition to boost its economy. <\/p>\n\n\n\n
The bank said its program will enhance energy security, increase port and rail volumes and support the shift to a low-carbon economy.<\/p>\n\n\n\n
\u201cOur ongoing partnership with the World Bank will assist us to move forward with greater speed on the reforms vital to transforming our infrastructure landscape,\u201d said Finance Minister Enoch Godongwana in the statement.<\/p>\n\n\n\n
The loan will make available funds for state-owned Eskom to bolster the grid for renewable generation and Transnet, South Africa\u2019s port and rail company, to increase freight transport capacity.<\/p>\n\n\n\n
South Africa is moving toward a competitive electricity market following a century-old monopoly held by Eskom. <\/p>\n\n\n\n