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.

Devdiscourse News Desk

Updated: 18-07-2024 17:34 IST | Created: 18-07-2024 17:34 IST

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.)

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South AfricaAfrican Development Bank$1 billion loanTransnetinvestmentfreight railmaintenanceequipment shortagesport serviceslogistics

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