AfDB Disburses $1 Billion to Support Transnet’s Recovery Plan
The African Development Bank (AfDB) has made the initial disbursement of a $1 billion loan to Transnet, South Africa’s state-owned logistics giant, signaling a milestone in the continent’s infrastructure development.
This marks the first of four tranches in a groundbreaking financing arrangement designed to support Transnet’s recovery and investment plan.
Approved in mid-2023, the loan underpins Transnet’s ZAR 152.8 billion ($8.1 billion) five-year strategy to upgrade critical infrastructure. The funds will address operational challenges while advancing South Africa’s logistics sector, a cornerstone of regional and continental trade.
“This swift disbursement demonstrates the African Development Bank’s commitment to the private sector in Africa, a vital driver of sustainable economic growth,” remarked Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization, at the Africa Investment Forum in Rabat.
Transnet, which employs over 50,000 people, operates Africa’s largest rail network and connects South Africa to regional partners like Zambia, Zimbabwe, and Botswana.
However, the company has grappled with years of underinvestment, theft, and infrastructure damage exacerbated by the COVID-19 pandemic. To address these challenges, Transnet has restructured, improved governance, and committed to reducing its carbon footprint.
The funding will revitalize key segments of South Africa’s supply chain, ensuring efficiency in port, rail, and pipeline operations while enhancing the country’s economic competitiveness.
AfDB’s financial intervention aligns with its broader goal of strengthening Africa’s economic integration and addressing logistical challenges that are vital for sustainable development.
