The recently announced US$1.5 billion Development Policy Loan Agreement signed between the South African government and the World Bank will be used to unlock infrastructure bottlenecks in South Africa.
This according to Minister in the Presidency Khumbudzo Ntshavheni who held a post-Cabinet media briefing in Cape Town on Thursday.
National Treasury announced the loan agreement in a statement on Monday.
“Cabinet was updated on the US$1.5 billion Development Policy Loan Agreement signed between the South African government and the World Bank that will be used to ensure inclusive economic growth and job creation.
“The loan is aligned with the National Treasury’s principles that forms part of the government’s broader efforts to implement structural reforms and will be used to unlock key infrastructure bottlenecks, particularly in the energy and freight transport sectors.
“The loan support is anchored on three pillars of structural reforms: improving energy security, enhancing the efficiency and competitiveness of freight transport services and supporting South Africa’s transition toward a low carbon economy, which are the backbone of government’s priority of inclusive growth and job creation,” she said.
Turning to the South African Renewable Energy Masterplan (SAREM), Cabinet has welcomed its launch.
The masterplan was launched earlier this month and is aimed at driving localised manufacturing, skills development and job creation.
“SAREM which was approved by Cabinet in March this year, aims to support the local demand for renewable energy and drive industrial development while ensuring a just energy transition,” Ntshavheni noted.
Foot and mouth disease vaccines
Cabinet has also welcomed the arrival of “much-needed vaccines, sourced from Botswana, to combat the foot and mouth disease (FMD) outbreak in certain parts of the country”.
“The vaccines are being distributed and administered free of charge to the affected areas, especially in KwaZulu-Natal (KZN) and those farms in other provinces where the disease has been identified.
“A second batch of vaccines is on order with the Botswana Vaccine Institute,” Ntshavheni said. – SAnews.gov.za
