South Africa committed to borrowing $1 bn from World Bank every year

The World Bank Group has reiterated its dedication to supporting the development agendas of South Africa and Namibia. A delegation of the World Bank Group’s board of executive directors visited the two nations from July 7th to 13th to evaluate the progress of ongoing projects financed by the institution.

Matteo Bugamelli, the World Bank’s executive director, underscored the organization’s commitment to addressing unemployment and inequality in both countries. Bugamelli represents a diverse constituency, including Albania, Greece, Italy, Malta, Portugal, San Marino, East Timor, Namibia, and South Africa.

In South Africa, World Bank officials met with key figures such as Finance Minister Enoch Godongwana and Electricity and Energy Minister Kgosientsho Ramokgopa. Meanwhile, in Namibia, discussions were held with Finance and Public Enterprises Minister Ipumbu Shiimi.

The visit highlights South Africa’s shift from a non-borrowing client to one now borrowing over $1 billion annually from the World Bank. The nation boasts the largest International Finance Corporation (IFC) portfolio in Africa and the continent’s second-largest Multilateral Investment Guarantee Agency portfolio.

In Namibia, the World Bank Group is crafting a new country programme to steer future support. A recent approval of a $138.5 million loan for renewable energy and transmission was granted to Namibia’s power utility, NamPower, underscoring the institution’s focus on sustainable development.

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