The New Development Bank (NDB) said on Friday that it was pleased to announce a R5 billion loan agreement with Transnet.
According to a statement by the freight transport and logistics company, this investment would help support the modernisation and improvement of South Africa’s freight rail sector.
The loan agreement was signed during NDB’s 9th Annual Meeting by NDB President, Dilma Rousseff and Transnet Group Chief Executive, Michelle Phillips.
The money will enhance the efficiency and capacity of SA’s freight rail systems.
This will happen through the improvement and modernisation of the freight rail sector programme which includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal, Transnet said.
The beleaguered company hopes that the money will help to restore freight rail volumes in SA, improving operational performance and reliability.
“We are delighted to partner with Transnet in this transformative initiative,” Rousseff said
“This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa. By modernising 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,” she said.
Phillips said that the R5 billion was a vital investment for Transnet.
“This investment is important for Transnet, as we accelerate the implementation of the Recovery Plan and economic reforms. The modernisation programme will enhance our operational capabilities and contribute to the growth and competitiveness of the economy,” she said.
A call for more investment from the private sector
Earlier in the day, Finance Minister Enoch Godongwana told world leaders at the opening ceremony of the NDB meeting that more investment from the private sector was needed.
The minister said that NDB’s main function is to address the geopolitical challenges evident in emerging markets, such as poverty and unemployment.
The hope is that the NDB will continue to play a major role in fostering this drive and responsibility to address key areas like green energy, digital transformation and infrastructure development, the minister said.
Godongwana called for more investment and collaboration by the private sector to ensure this fruitful development.
Specifically, the minister said that South Africa is committed to making this happen with the help of the Bank to ensure development and create sustainable change.
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