Johannesburg – South Africa has received a $750 million (about R11.4 billion) loan from the World Bank in an effort to support economic recovery in the country.
Circumstances brought on to the economy by the Covid-19 pandemic will see the loan fill the gap created by additional spending.
“The World Bank budget support is coming at a critical time for us and will contribute towards addressing the financing gap stemming from additional spending in response to the Covid-19 crisis,” Dondo Mogajane, director-general of the National Treasury said.
South Africa has been drastically affected by the Covid-19 pandemic, recording over three million infections to date.
Lockdowns that were implemented to protect the people from the virus led to the closure of many businesses.
The four waves which have hit the country have claimed the lives of close to 94,000 people and infected 3.5-million in Africa’s worst caseload.
“The World Bank budget support is coming at a critical time for us,” Dondo Mogajane, the director-general of the National Treasury, said in a statement.
World Bank country director for South Africa, Marie Françoise Marie Nelly, said this loan will assist the government in turning the tide for the economy.
“This support aims to put the country on a more resilient and inclusive growth path by leveraging South Africa’s strength to mitigate the effects of the Covid-19 crisis through their strong social safety net and by advancing critical economic reforms,” Marie Nelly said.
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