JOHANNESBURG, May 13 (Reuters) – South Africa has secured a $150 million development policy loan from the OPEC Fund for International Development to support reforms aimed at easing infrastructure bottlenecks, its National Treasury said on Wednesday.
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- The Treasury in a statement said that the loan agreement was the first between South Africa’s government and the OPEC Fund.
- “The loan will support government’s ongoing reform programme aimed at unlocking infrastructure bottlenecks, particularly in the energy and freight transport sectors,” the statement said.
- It aligns with the Treasury’s financing strategy, which seeks to diversify funding sources and minimise increases in debt-service costs.
- The Treasury said the financing has a six-year maturity with a two-year grace period and an interest rate of six-month Secured Overnight Financing Rate plus 1.25%.
Reporting by Nilutpal Timsina