World Bank Reaffirms Support for South Africa and Namibia’s Development Progress

In South Africa, the country has transitioned from being a non-borrowing client to borrowing over $1 billion annually from the World Bank over the past three years.

A delegation from the World Bank Group's (WBG) Board of Executive Directors (EDs) recently visited South Africa and Namibia from July 7-13, commending both countries for their progress towards development goals and reaffirming the WBG's commitment to providing ongoing support. The visit, hosted by the World Bank and the International Finance Corporation (IFC), was an opportunity for the EDs to assess project advancements and deepen the WBG's knowledge and financing partnership with these nations.

During their visit, the delegation engaged with government officials, business leaders, local stakeholders, and project beneficiaries. The discussions highlighted common challenges such as poverty, unemployment, and inequality, and explored the WBG's continued role in addressing these issues through inclusive economic growth and job creation.

In South Africa, the country has transitioned from being a non-borrowing client to borrowing over $1 billion annually from the World Bank over the past three years. South Africa also boasts the largest IFC portfolio in Africa and the second-largest Multilateral Investment Guarantee Agency (MIGA) portfolio on the continent. The delegation met with key figures including Minister of Finance Honorable Enoch Godongwana and Minister of Electricity and Energy Honorable Kgosientsho Ramokgopa. They visited notable projects such as the Eskom Just Energy Transition Project at Komati power station, the innovative Wildlife Conservation Bond at Addo Elephant Park, and IFC-supported initiatives like the Trust for Urban Housing Finance and BioVac Institute.

In Namibia, the WBG is in the process of preparing a new Country Partnership Framework (CPF) to guide future support. Recently, the World Bank approved a $138.5 million renewable energy and transmission loan to NamPower, marking the country's return to borrowing after 15 years. The delegation met with Minister of Finance and Public Enterprises Honorable Ipumbu Shiimi and visited informal settlements near Windhoek to address housing issues, a priority sector for IFC investment and government focus.

Matteo Bugamelli, the World Bank's Executive Director representing countries including Albania, Greece, and Italy, expressed optimism about the progress in both countries. He emphasized the WBG's commitment to supporting South Africa and Namibia in tackling unemployment and inequality, and welcomed the increased financing aimed at implementing essential reforms.