JOHANNESBURG, May 13 – South Africa has secured a $150 million development policy loan from the OPEC Fund for International Development to support reforms aimed at addressing infrastructure constraints in the country’s energy and freight transport sectors.
The financing agreement marks the first deal between South Africa’s government and the OPEC Fund, according to a statement released Wednesday by National Treasury of South Africa.
The Treasury said the loan will support the government’s broader reform agenda focused on easing infrastructure bottlenecks that have weighed on economic growth and investment.
“The loan will support government’s ongoing reform programme aimed at unlocking infrastructure bottlenecks, particularly in the energy and freight transport sectors,” the Treasury said.
South Africa has been pursuing structural reforms to improve electricity generation, logistics efficiency and rail capacity after years of operational disruptions and underinvestment.
The Treasury said the financing aligns with its broader strategy to diversify funding sources while limiting increases in debt-service costs.
The loan carries a six-year maturity period, including a two-year grace period, and is priced at the six-month Secured Overnight Financing Rate plus 1.25%.
The agreement comes as South Africa intensifies efforts to stabilize public finances and attract investment through infrastructure modernization and private-sector participation.
