South Africa to benefit from energy loan
9 April 2010
Access to electricity in South Africa will be expanded by a loan granted by the World Bank.
The $3.75 billion (£2.44 billion) fund also aims to finance a number of renewable energy projects in developing countries.
Eskom - South Africa's power utility - will receive the loan, which the World Bank claims will help to create jobs in the energy sector.
"Access to energy is essential for fighting poverty and catalyzing growth, both in South Africa and the wider sub-region," World Bank vice president for the Africa region Obiageli Ezekwesili noted.
Included in the Eskom Investment Support Project (EISP) are funds for piloting a wind power project and plans for solar-powered electricity generation.
South Africa's energy crisis in 2007-08 prompted the loan, with the worldwide economic crisis adding to the need for such funds, the World Bank revealed.
Eskom - which deals with electricity generation - states its aim is to build "a powerbase for sustainable growth".