OPEC Fund backs South Africa’s infrastructure reform

The OPEC Fund for International Development has signed its first loan agreement with South Africa, providing US$150 million to support reforms in the country’s energy and transport sectors and advance its low-carbon and just transition agenda.

The policy-based loan will support the government’s efforts to address critical infrastructure bottlenecks, strengthen long-term energy security and improve freight transport systems that are essential for domestic and international trade.

OPEC Fund President Abdulhamid Alkhalifa said: “This first loan agreement with South Africa marks an important milestone. Reliable energy and efficient transport are essential for growth, competitiveness and job creation. With this financing, the OPEC Fund is supporting reforms that strengthen infrastructure services, expand opportunities for private investment and contribute to a more resilient, low-carbon economy. We look forward to developing a successful partnership with South Africa.”

The OPEC Fund financing is part of a broader international support package co-financed by the World Bank, the African Development Bank, KfW of Germany and the Japan International Cooperation Agency.

The program focuses on three mutually reinforcing reform areas: strengthening the restructuring of the power sector; developing a more efficient freight transport sector; and supporting a low-carbon and just transition. It is also expected to promote greater private sector participation in key infrastructure sectors.

The agreement opens a new chapter in the OPEC Fund’s partnership with South Africa and reflects the institution’s commitment to supporting country-led reforms that improve essential services, strengthen economic resilience and contribute to sustainable growth.

Read the press release