/Reuters Agency
France’s development agency has agreed to grant a 300 million euro loan to the South African state logistics group Transnet for clean energy initiatives. Transnet manages the freight rail network, ports, and pipelines in Africa’s largest economy.
The South African government is trying to revive the company after years of chronic underperformance that have hampered exports of commodities like coal and iron ore, but the recovery efforts are only just beginning to yield results.
Disbursements of the loan from France’s AFD agency will be linked to progress on sustainability targets, including Transnet increasing its use of renewable energy, Transnet and AFD said in a joint statement.
The financing will also promote a shift from road to rail transport, including the rehabilitation of 550 kilometers of railway tracks and the modernization of port infrastructure, according to the report.
