African Development Bank disburses 1st tranche of $1bn Transnet loan
First in a series of four tranches planned for financing arrangement to support Transnet’s business’s recovery plan.
The African Development Bank has released the first tranche of its $1 billion loan to Transnet, the South African state-owned conglomerate managing the country’s ports, railways and pipelines.
The disbursement is the first in a series of four tranches planned for financing arrangement to support Transnet’s business’s recovery plan, says an official release from the bank.
"The funding will allow Transnet to commence the first phase of its ambitious ZAR 152.8 billion ($8.1 billion) five-year investment plan to upgrade existing infrastructure while enhancing key logistic chain segments."
Solomon Quaynor, Vice President, Private Sector, Infrastructure and Industrialisation, African Development Bank Group says: "This swift disbursement shows the Bank’s commitment to the private sector in Africa, which is essential for supporting sustainable economic growth."
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, the release added.
"With over 30,000 kilometres of railway infrastructure -- the largest in any emerging economy -- Transnet plays a vital role in regional economies. 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."
