world bank South Africa has agreed to provide US$350 million in financing for a new credit guarantee facility aimed at unlocking private financing for infrastructure, including the expansion of the electricity transmission grid.
world bank The funding will come from the International Bank for Reconstruction and Development, part of the World Bank Group, it said in a statement.
The credit guarantee vehicle aims to raise approximately US$10 billion of capital over a 10-year period from private investors, commercial lenders and institutional investors.
Reuters reported last year that the World Bank was considering funding the facility.
The World Bank statement quoted Finance Minister Enoch Godongwana as saying the vehicle “will support large-scale investment in transmission infrastructure” and will be incorporated as a company in the coming months.
South Africa is fueling private investment with plans to add thousands of kilometers of new power lines and increased transformer capacity as it looks to recover from more than a decade of power outages.
Reading: Multilateral wheeling will define the next phase of South Africa's energy transition
The World Bank said the initiative will support the government's economic reform agenda. — Sfundo Parakozov, (c) 2026 Reuters
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