The World Bank has confirmed that it will loan South Africa $1bn to help the country resolve its energy crisis as it battles with its worst-ever power cuts.
According to the World Bank, the frequent power cuts have severely impacted South Africa’s economy, slowing its GDP growth.
In a statement, the World Bank said the loan endorses a significant and strategic response to South Africa’s ongoing energy crisis and the country’s goal of transitioning to a just and low carbon economy.
There have been power outages since 2007 but they have escalated in recent years, with blackouts of up to 16 hours a day.
More than 80% of South Africa’s electricity is generated by burning coal, ranking the country as the world’s 14th largest emitter of carbon dioxide.
