21 January 2022

The World Bank announced on Friday morning that it had approved South Africa’s request for $750 million (about R11.4 billion) loan. 

“This loan will support the government of South Africa’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,” the World Bank and SA’s National Treasury said in a joint statement. 

This completes the country’s aim to secure R95 billion from multilateral institutions.

In July 2020 the International Monetary Fund granted SA a $4.3 billion (around R70 billion at the time) loan to support job creation and protection for businesses impacted by the Covid-19 pandemic. In April 2021, it was announced that SA would get a $1 billion (R14.5 billion at the time) loan from the New Development Bank (NDB). The NDB is a development finance institution established by Brazil, Russia, India, China and SA as part of the BRICS grouping. 

The World Bank and Treasury said on Friday that the “low interest” $750 million development policy loan (DPL) is meant to support the country’s implementation of the country’s Economic Reconstruction and Recovery Plan. According to the statement it will enhance financial sector stability – specifically the establishment of a deposit insurance scheme, and will support SA’s “commitment to climate change”. 

Source : Fin24

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