The New Development Bank (NDB) – a multilateral development bank established by BRICS members – signed an agreement to provide South Africa’s Transnet a $278.8 million loan to modernize the country’s freight rail sector.
The loan will finance the renewal of rail network infrastructure, the acquisition of new wagons and the overhaul of locomotives to boost freight rail volumes and enhance operational efficiency in South Africa. The infrastructure modernization falls under Transnet’s Recovery Plan and aligns with South Africa’s broader economic reforms.
“This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa,” stated NDB President, Dilma Rousseff, adding “By modernizing the freight rail sector, we aim to facilitate more efficient logistics operations that will benefit the entire region and align with our goal of investing in a sustainable future.”
In July 2024, Transnet also secured a $1 billion loan from the African Development Bank to fund its $8.1 billion Recovery Plan.
