NDB signs R5bn loan agreement with Transnet to modernise SA’s freight and rail

02-09-24 / Kwanele Sibanda

NDB signs R5bn loan agreement with Transnet to modernise SA’s freight and rail

Cape Town - The New Development Bank (NDB) is has announce a R5bn loan agreement with Transnet, South Africa’s leading freight transport and logistics company.

NDB said that this investment, aligned with the theme of its 9th Annual Meeting, “Investing in a Sustainable Future", will support the modernisation and improvement of South Africa’s freight rail sector.

The loan agreement, signed during bank's 9th Annual Meeting, aims to enhance the efficiency and capacity of South Africa’s freight rail systems. It explained that the improvement and modernization of freight rail sector programme includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal. This programme is expected to restore freight rail volumes in South Africa, improving operational performance and reliability, and contributing to a sustainable future.

NDB President, H.E. Dilma Rousseff, said, “We are delighted to partner with Transnet in this transformative initiative. This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa. By modernizing the freight rail sector, we aim to facilitate more efficient logistics operations that will benefit the entire region and align with our goal of investing in a sustainable future.”

Transnet Group Chief Executive, Michelle Phillips added, “This investment is important for
Transnet, as we accelerate implementation of the Recovery Plan and economic reforms. The modernisation programme will enhance our operational capabilities and contribution to the growth and competitiveness of the economy. We are grateful for NDB’s support and look forward to a successful collaboration.”