The World Bank approves a 750 million USD loan to South Africa to increase the recovery of its economy.

January 24, 2022

South Africa receives a 750 million USD development policy loan (DPL) with aims to support the country’s economic Reconstruction and Recovery Plan implementation. Together with R70 billion from International Monetary Fund in 2020, R14.5 billion from the New Development Bank, and the latest from the World Bank, SA achieved its goal of receiving a total of R95 billion from multilateral institutions to aid its financial instability.

With the 750 million USD funding, SA will enhance financial sector stability, particularly to create a deposit insurance scheme and assist in the country’s “commitment to climate change.” The loan will support the government to accelerate its response focused on safeguarding the poor and vulnerable from the unpleasant socio-economic impacts of the pandemic and support a resilient and sustainable economic recovery.

Through this support, South Africa will focus on achieving a more resilient and inclusive growth path by using its strength to alleviate the financing critical health through a robust social safety net and by strengthening essential economic reforms.

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