JOHANNESBURG, May 13 (Xinhua) -- The South African government announced Wednesday that it has secured a 150-million-U.S.-dollar development policy loan from the OPEC Fund for International Development to support infrastructure reforms.
In a statement, South Africa's National Treasury said the loan aims to "support critical structural reforms to improve the efficiency, resilience, and sustainability of the country's infrastructure services."
This marks the first loan agreement between South Africa and the OPEC Fund. The Treasury added that the funding will help address "pressing economic challenges of low growth and high unemployment."
"The loan will support the government's ongoing reform program aimed at unlocking infrastructure bottlenecks, particularly in the energy and freight transport sectors. These are critical for enabling inclusive economic growth, improving service delivery, and fostering job creation," the Treasury said.
The announcement comes just one day after the government published its latest unemployment figures.
The official unemployment rate rose to 32.7 percent in the first quarter, up from 31.4 percent in the fourth quarter of 2025, bringing the total number of unemployed people to 8.1 million.
South Africa's official unemployment rate has now remained above 30 percent for more than five years.
According to the Treasury, the OPEC Fund loan features a six-year maturity with a two-year grace period. It carries an interest rate tied to the six-month Secured Overnight Financing Rate plus 1.25 percent. ■
