A massive loan to fix SA's infrastructure will be ineffective if poor governance continues.
South Africa has secured a $1.5 billion loan agreement with the World Bank.
National Treasury said the purpose of the loan is to fix the country’s transport and energy infrastructure, while also helping to boost economic growth.
However, poor governance continues to plague South Africa, with the state-owned enterprises (SOEs) Eskom and Transnet serving as glaring examples of this.
The unreliability of the power system in certain parts of the country has constrained GDP growth, while ongoing port and rail inefficiencies continue to hamper the performance of the mining and manufacturing sectors.
NOW READ: Treasury confirms R27bn World Bank loan to fix infrastructure
