World Bank to Help South Africa Unlock Investment of $10 Billion

The World Bank approved $350 million in funding for South Africa to establish a credit-guarantee mechanism aimed at stimulating private-sector investment in critical infrastructure projects. The initiative targets accelerating South Africa’s transmission grid expansion, addressing persistent energy shortages that have hindered economic growth and industrial productivity. The guarantee vehicle will mitigate risks for private investors, unlocking an estimated $10 billion in additional infrastructure financing over the coming years. Funding was announced in March 2026, aligning with South Africa’s broader strategy to modernize its energy sector and reduce reliance on state-owned utility Eskom. This marks the World Bank’s latest effort to support emerging economies through blended finance models, combining public guarantees with private capital.