The African Development Bank (AfDB) has made an initial disbursement of $1 billion to South Africa’s state-owned logistics company, Transnet, marking a key step in enhancing the continent’s infrastructure.
This loan is part of a four-tranche financing agreement approved in mid-2023, supporting Transnet’s ZAR 152.8 billion ($8.1 billion) five-year plan to upgrade critical infrastructure.
The funds will address operational issues and strengthen South Africa’s logistics sector, vital to regional and continental trade.
AfDB Vice President Solomon Quaynor highlighted the disbursement’s importance for private sector growth in Africa, emphasizing the need for sustainable economic development.
Transnet, operating Africa’s largest rail network and employing over 50,000 people, has faced challenges like underinvestment, theft, and infrastructure damage, compounded by the COVID-19 pandemic. To overcome these, the company has restructured and improved governance.
The funding will revitalize South Africa’s supply chain, focusing on ports, rail, and pipeline operations, boosting the country’s competitiveness.
AfDB’s support aligns with its broader mission to enhance Africa’s economic integration and address logistical barriers for sustainable development.
