The African Development Bank has released the first tranche of its $1-billion loan to Transnet. This disbursement is the first in a series of four tranches planned for a financing arrangement to support Transnet’s business recovery plan.
Approved by the bank’s board of directors five months ago, this funding underpins a recovery plan to address pressing operational challenges of the company, while bolstering South Africa’s critical infrastructure.
The funding will allow Transnet to commence the first phase of its ambitious R152,8 billion ($8,1-billion) five-year investment plan to upgrade existing infrastructure while enhancing key logistic chain segments.
“This swift disbursement shows the bank’s commitment to the private sector in Africa, which is essential for supporting sustainable economic growth,” says Solomon Quaynor, vice-president for private sector, infrastructure and industrialisation at the African Development Bank Group, speaking on the sidelines of the Africa Investment Forum 2024 Market Days in Rabat.
The efficiency of the disbursement reflects Transnet’s fulfilment of the Bank’s rigorous requirements for governance, the environmental stewardship, and social responsibility. Following the September 2023 signing of the loan agreement between Transnet and the African Development Bank in Johannesburg, the bank committed to supporting Transnet’s recovery plan with targeted financing.
With over 30 000 kilometres of railway infrastructure — the largest in any emerging economy — Transnet plays a vital role in regional. Its railway network links South Africa’s ports with key regional partners, including Botswana, Zambia, Zimbabwe and the Democratic Republic of Congo, and supports operations at Durban, the fourth-largest container terminal in the southern hemisphere.