World Bank approves R11.4bn loan to support SA’s Covid-19 recovery

Funding aims to tackle the economic crisis the country has experienced since the pandemic.
Dondo Mogajane, director-general of the National Treasury says the World Bank support comes at "a critical time" for the country. Image: Dwayne Senior/Bloomberg

The World Bank has approved South Africa’s $750 million (around R11.4 billion) loan request as part of efforts to address the socio-economic impact of Covid-19 and bolster economic recovery, the National Treasury confirmed on Friday.

“The World Bank budget support is coming at a critical time for us and will contribute towards addressing the financing gap stemming from additional spending in response to the Covid-19 crisis,” Dondo Mogajane, director-general of the National Treasury said.

“It will 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.”

On the African continent, South Africa has been the most drastically affected by the Covid-19 pandemic, recording over three million infections to date.

Successive lockdowns saw many businesses shutting down and others implementing retrenchments which led to a record-high rate of unemployment.

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World Bank country director for South Africa, Marie Françoise Marie Nelly, says this loan will assist the government in turning the tide for the economy.

“This support aims to put the country on a more resilient and inclusive growth path by leveraging South Africa’s strength to mitigate the effects of the Covid-19 crisis through their strong social safety net and by advancing critical economic reforms,” Marie Nelly said.

Palesa Mofokeng is a Moneyweb intern.

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More corruption and money stealing opportunities from the politicians.

Merrily bankrupting the country and ruining it for the following generations !!

The IMF and the World Bank were created as part of the Bretton Woods Agreement after WW2.

According to this agreement the USA prints the reserve currency of the world. The World Bank distributes it to the Emerging Markets who use that money to buy American government bonds to hold as reserves to finance the imports of oil and American exports which are dollar based.

To cut al long story short – the money that is created by the Fed ends up as a loan to the US government after it has traveled through the World Bank and Emerging Markets.

They enslave the Emerging Market nations in the process. This is the modern, sophisticated, and cross-border version of the old feudal system. There is no free lunch in the capitalist system.

The luxury car salesmen are rubbing their hands in glee, another round of good old African Stimulus and Economics!!

My first reaction, OMG I would not like to handle how much interest this loan will attract! Second reaction: How much of this loan will fall into the hands of corruption? Third reaction: Please! Use most of it to help all those who’s lives have been turned upside down from this deadly disease which has killed over 90000 of us!

Just when old Ray Z thought he could take a break from JZ, next round of Thieving Commission is upon him!!

End of comments.

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