South Africa’s state-owned freight and logistics company Transnet has received a US$1 billion boost for its five-year, US$8.1 billion recovery plan.
The AfDB is stumping up the new 25-year loan, which is fully guaranteed by the South African government, to help the beleaguered company repair its infrastructure as part of the recovery plan unveiled late last year, reports Engineering News.
‘Our partnership will enable Transnet to execute a comprehensive recovery plan, addressing operational inefficiencies, particularly in the rail and port sectors,’ says AfDB private sector, infrastructure and industrialisation vice-president Solomon Quaynor.
Transnet CEO Michelle Phillips says the AfDB loan ‘will make a significant contribution to Transnet’s capital investment plan to stabilise and improve the rail network and to contribute to the broader South African economy’.
The bank is also considering two further grants worth a total off US1.75 million to help Transnet improve its energy efficiency and accelerate railway reforms and address structural and regulatory inefficiencies.
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