World Bank approves 3.75 billion dollar loan to support South Africa's energy security plans

The World Bank on Thursday approved a 3.75 billion dollar loan to help South Africa achieve a reliable electricity supply while also financing some of the biggest solar and wind power plants in the developing world.

The loan the World Bank's first major lending engagement with South Africa since the fall of apartheid 16 years ago aims to benefit the poor directly, through jobs created as the economy bounces back from the global financial crisis and through additional power capacity to expand access to electricity.

The loan is provided to South Africa's power utility, Eskom, and was brought about by unique circumstances including South Africa's energy crisis of 2007 and early 2008, and the global financial crisis that exposed the country's vulnerability to an energy shock and severe economic consequences, according to the World Bank.

"Without an increased energy supply, South Africans will face hardship for the poor and limited economic growth," said Obiageli K. Ezekwesili, World Bank Vice President for the Africa Region.


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