The African Development Bank (AfDB) approved a $503.75 million loan to South Africa on Wednesday, 11 November 2026, to support infrastructure reforms. The operation backs greater competition and private investment in electricity, freight transport and water services.
The new loan follows AfDB reform support worth $300 million in 2023 and $474.5 million in 2025. Together, the three operations amount to approximately $1.278 billion since 2023. Coordinated by South Africa’s National Treasury, the programme addresses how critical networks are managed and financed.
In electricity, regulator NERSA has issued a licence to the wholesale-market operator housed within National Transmission Company South Africa (NTCSA), the transmission subsidiary of state-owned Eskom. It has also approved grid capacity allocation rules. The authorities aim for the wholesale market to account for 10% of electricity transactions by December 2027.
Opening freight rail and ports to private operators
Rail reforms will allow private companies to use infrastructure managed by Transnet Rail Infrastructure Manager. At least 11 train-path slots across six corridors were awarded in August 2025. The programme targets at least six newly licensed private rail and port operators by December 2027 and aims to lift annual rail freight volumes from 161 million to 180 million tonnes.
Port reforms include the 25-year concession agreed in December 2025 for Durban Container Terminal Pier 2. Its annual capacity is targeted to increase from 2 million to 2.8 million twenty-foot equivalent units by 2028. The water component will address licensing and regulatory arrangements for municipal service providers.
The AfDB financing forms part of an internationally coordinated reform effort. In July 2026, the World Bank approved a separate $1.5 billion development policy loan supporting South Africa’s infrastructure modernisation and job creation agenda, including reforms of electricity, freight transport and water services.