African Development Bank Grants $1 Billion Loan to Revive South Africa's Transnet

The African Development Bank has approved a $1 billion loan for South Africa's state-owned logistics firm, Transnet. The funding aims to help Transnet recover from equipment shortages and maintenance backlogs caused by years of under-investment, hindering its freight rail and port services.

The African Development Bank (AfDB) announced on Thursday that it has approved a $1 billion loan to support Transnet, South Africa's beleaguered logistics company.

Transnet, a state-owned enterprise, has faced significant challenges in delivering adequate freight rail and port services. These issues stem from prolonged equipment shortages and deferred maintenance, attributed to years of under-investment.

The approved loan aims to provide the necessary financial support for Transnet to execute its recovery plan and improve its logistics capabilities.

(With inputs from agencies.)