South Africa Secures $1.5 Billion Infrastructure Loan From World Bank, SA Worried It Will Be Stolen

• The South African government has secured a $1.5 billion loan from the World Bank to boost infrastructure development
• National Treasury said the loan would benefit energy security, freight transport services, and help the transition towards a low-carbon economy
• South Africans were concerned that the money would never be used for its intended purposes, and would be stolen

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent 10 years working for the Northern Natal Courier before transitioning to online journalism.

WESTERN CAPE – The South African government has signed a $1.5 billion (approximately R26 billion) loan with the World Bank, but citizens are wondering how much of that money will end up in the pockets of politicians.

The National Treasury stated that the loan was taken to boost infrastructure development in the country, saying that it was aimed at assisting in unlocking key infrastructure bottlenecks.

Loan to boost country’s infrastructure services

In a statement on Monday, 23 June 2025, National Treasury said that the loan was for three key pillars of structural reform. This was to improve energy security, enhance the efficiency and competitiveness of freight transport services, and support the country’s transition toward a low-carbon economy. Energy security and infrastructure development were among the promises Cyril Ramaphosa made during his State of the Nation Address.

“This partnership marks a significant step towards addressing South Africa’s pressing economic challenges of low growth and high unemployment,” the statement read.

National Treasury also noted that the loan offered favourable interest rates and flexible repayment terms. It said that this would contribute to minimising an increase in debt service costs. In May 2025, it was announced that the South African government spends R1.21 billion a day to service its debt.

The loan marks the second time the country has reached out to the World Bank for support in the past two years.

In September 2023, the World Bank agreed to a $1 billion development policy financing (DPF) loan. This was to support South Africa’s low-carbon transition. The country said that the loan was necessary due to South Africa’s electricity crisis.

South Africans concerned by the latest loan

Social media users weighed in on the loan, with many expressing concerns that the money would never be used for its intended purposes.

Adriaan Walters said:

“Looters are already assigned to their piece of the pie.”

George Wood added:

“You can almost hear all the hungry little cadres squealing away in anticipation.”

Rowen Loretz stated:

“It will be looted in no time.”

Ngwan'a Kwena noted:

“They can dress it up however they want, but we’ve seen this movie before. Every time they announce a new loan or fund for infrastructure, it ends up being a cash cow for connected elites.”

Linda Craigli stated:

“This money will never be used for what it's intended; instead, it will be stolen before it gets here.”

Roger Cormack said:

“Oopsie. The gravy train is on the go again, and the taxpayer will pay.”

Bryan Charles Judd added:

“They steal all the funds that were actually meant for structural reforms, then borrow more to steal. Taxpayers pay for all the debt. Viva.”

DA welcomes infrastructure development budget

Briefly News reported that the Finance Minister set aside R1 trillion for infrastructure development.

The Democratic Alliance (DA) welcomed the amount set aside by Enoch Godongwana.

South Africans are concerned that the huge amount of money will be used for its intended purposes.

Source: Briefly News