Cape Town – The World Bank has approved South Africa’s request for a $750 million (about R11.4 billion) development policy loan, to bolster the country’s economic recovery efforts, as it continues to reel under the Covid-19 pandemic.
South Africa has been hit hard by four waves of infection that killed close to 94 000 people and infected over 3.5-million in Africa’s worst caseload.
“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.
MEDIA STATEMENT ALERT: Media statement on the World Bank’s Development Policy Loan to South Africa. @WorldBankAfrica @GovernmentZA pic.twitter.com/J58zSjS3cv
— National Treasury (@TreasuryRSA) January 21, 2022
Director-general of the National Treasury Dondo Mogajane said the World Bank budget support comes at a critical time “will contribute towards addressing the financial gap stemming from additional spending in response to the Covid-19 crisis”.
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He continued: “It will assist in addressing the immediate challenge of financing critical health and social safety net programmes to develop our economic reform agenda to build back better.”
The World Bank said the funding is a low-interest loan that will contribute to South Africa’s fiscal relief package.
“The loan complements support by the International Monetary Fund, the African Development Bank and the New Development Bank,” said the World Bank.
According to Fin24, the development completes the country’s aim to secure R95 billion from multilateral institutions.
In July 2020 the International Monetary Fund granted South Africa a $4.3 billion (R70 billion) loan to support job creation and protection for businesses impacted by the Covid-19 pandemic. In April 2021, it was announced that South Africa would get a $1 billion (R14.5 billion) loan from the New Development Bank (NDB), said the report.
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Compiled by Odwa Shumi
