AfricaTopSuccess They make Africa
The World Bank will lend South Africa $1 billion to help the country resolve its energy crisis as it battles the worst power cuts in its history.
There have been power since 2007 but they have escalated in recent years, causing blackouts of up to 16 hours a day.
According to the World Bank, the frequent power cuts have severely impacted South Africa’s economy, slowing its GDP growth.
“The loan endorses a significant and strategic response to South Africa’s ongoing energy crisis and the country’s goal of transitioning to a just and low carbon economy,” the World Bank said in a statement on Wednesday, after its board approved the loan.
More than 80% of South Africa’s electricity is generated by burning coal. As a result, the country is ranked as the world’s 14th largest emitter of carbon dioxide.
The World Bank said that the loan will allow South Africa to reform the country’s state-owned power company, Eskom, which has more than $26bn of debt.
