The World Bank has granted South Africa a $750 million loan to support Governments efforts in the fight against COVID-19.
In a statement, the World Bank said the funding is a low interest loan that contributes to the government’s fiscal relief package while reinforcing South Africa’s decisions on how best to provide relief to the economy and those worst affected by the current crisis.
The loan, which amounts to over R11,4 billion, will complement support by the International Monetary Fund and the African Development Bank.
Treasury Director-General Dondo Mogajane said the World Bank budget support is coming at a critical time for the country.
“It will contribute towards addressing the financing gap stemming from additional spending in response to the COVID-19 crisis and assist in addressing the immediate challenge of financing critical health and social safety net programs whilst also continuing to develop our economic reform agenda to build back better.”
World Bank Country Director for South Africa Marie Françoise Marie Nelly said with the granting of the loan, the World Bank has partnered with the government to provide much needed relief from the impacts of the most serious economic crisis South Africa has experienced in the past 90 years.