Transnet snags $1 billion AfDB loan to fund recovery plans

The African Development Bank approved a $1 billion loan for South Africa’s state-owned ports and rail operator to help fund its plan to revive ailing infrastructure and expand its business. 

The government is fully guaranteeing the five-year loan to Transnet SOC Ltd., the Abidjan-based lender said in an emailed statement. 

Transnet is working to reverse a collapse in its facilities that has hobbled economic growth in Africa’s most industrialized economy and cost the nation tens of billions of rand in lost trade. Volumes of goods and commodities for export have dropped because of issues including vandalism, idle locomotives and cable theft. 

The company has started a five-year, 152.8 billion-rand ($8.4 billion) capital-investment plan to fix its problems.