The World Bank is providing a $1 billion loan to South Africa to help address the nation’s energy crisis, which has been exacerbated by its most severe power cuts to date.
These power outages have been a recurring issue since 2007 but have worsened in recent years, leading to blackouts lasting as long as 16 hours daily.
The World Bank states that these frequent power interruptions have significantly hindered South Africa’s economic growth, causing a slowdown in GDP expansion.
The World Bank’s board approved the loan and described it as a substantial and strategic response to South Africa’s ongoing energy crisis, aligning with the country’s objective of transitioning to a more equitable and environmentally friendly economy.
South Africa relies on coal for over 80% of its electricity generation, earning it the rank of the 14th largest carbon dioxide emitter in the world.
The loan will enable South Africa to restructure its state-owned power company, Eskom, which carries a debt exceeding $26 billion.
Source-BBC
