South Africa will receive a $475 million loan from the African Development Bank

South Africa will receive a $474.6 million loan from the African Development Bank on Tuesday to update its electricity and transportation infrastructure. This is the second significant infrastructure credit the nation has received in recent weeks.

The funds supplement the $1.5 billion loan that South Africa and the World Bank agreed to last month for a comparable use.

Africa’s most developed economy has been unable to expand for almost ten years due to frequent power outages, deteriorating rail systems, and persistently clogged ports that have impeded important sectors like mining and auto manufacturing.

According to a statement from the African Development Bank, among other things, the investment was intended to support train modernization and energy efficiency.

The World Bank loan, 500 million euros ($590.75 million) from the German development bank KfW, up to $200 million from the Japan International Cooperation Agency, and $150 million from the OPEC Fund for International Development are all included in the international financing package for South Africa, it said.