World Bank Approves $1 Billion Loan to Address South Africa's Energy Crisis

Loan to provide immediate relief for blackouts and endorse South Africa's transition towards a low carbon economy, amid warnings its climate change targets may be affected due to ongoing reliance on coal stations.

The World Bank has approved a $1 billion loan for South Africa in an attempt to mitigate the country's mounting energy crisis, characterized by the country's worst electricity blackouts that have resulted in a reliance on polluting coal-fired power stations.
Eskom, the state-run power utility responsible for generating approximately 80% of South Africa's electricity, has been unable to meet energy demands due to corruption, mismanagement, and regular breakdowns.
The loan represents a significant strategic response to the energy crisis and supports South Africa's goals of transitioning to a just and low-carbon economy, despite fears that short-term climate change targets may be impacted.
South Africa, which has the most advanced economy in Africa and is the world's 16th-largest emitter of greenhouse gases, needs nearly $80 billion to fund its transition to greener energy sources over the next five years.
The World Bank had previously granted a $439.5 million loan to South Africa for the conversion of a decommissioned power station into a renewable energy provider.