BRICS’ New Development Bank (NDB) announce a R5 billion loan agreement with Transnet. The loan, which will be guaranteed by the South African government, was announced by director general, Duncan Pieterse during a meeting of the New Development Bank in Cape Town.
The loan agreement, signed during NDB’s 9th Annual Meeting, aims to enhance the efficiency and capacity of South Africa’s freight rail systems. The improvement and modernization of freight rail sector program includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal.
BRICS’s NDB President, H.E. Dilma Rousseff, said, “We are delighted to partner with Transnet in this transformative initiative. This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa. By modernizing 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.”
Transnet Group Chief Executive, Michelle Phillips added, “This investment is important for Transnet, as we accelerate implementation of the Recovery Plan and economic reforms. The modernisation programme will enhance our operational capabilities and contribution to the growth and competitiveness of the economy. We are grateful for NDB’s support and look forward to a successful collaboration.”
This investment is expected to restore freight rail volumes in South Africa, improving operational performance and reliability, and contributing to a sustainable future.
