South Africa secures $150 million loan from OPEC Fund

The Hillbrow Tower, an iconic tower used to identify the Johannesburg skyline, is seen as the sun rises, in Johannesburg, South Africa

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South Africa has secured a $150 million development policy loan from the OPEC Fund for International Development to support reforms aimed at easing infrastructure bottlenecks, its National Treasury said on Wednesday.

The Treasury, in a statement, said that the loan agreement was the first between South Africa's government and the OPEC Fund.

"The loan will support government's ongoing reform programme aimed at unlocking infrastructure bottlenecks, particularly in the ‌energy ⁠and freight transport sectors," the statement said.

It aligns with the Treasury's financing strategy, which seeks to diversify ⁠funding sources and minimise increases in debt-service costs.

The Treasury said the financing has ⁠a six-year maturity with a two-year grace period and an ⁠interest rate of six-month Secured Overnight Financing Rate plus 1.25%.

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