Latest news with #SatuKahkonen
The South African
12-06-2025
- Business
- The South African
South Africa's loan for reform: World Bank in control
South Africa's loan of R26 billion for reforms authorised by the World Bank will improve the country's infrastructure. The Country Partnership Framework serves as the core plan to help South Africa reform through investments and partnerships. Reform aims to reorganise Eskom, transition to cleaner energy sources, make state-owned enterprises work better, and influence policies. The National Treasury supports these as part of the process of getting the debt and the budget back on track. Giving private control over public value is meant to get private money to pay for public services and infrastructure. South Africa gets short-term help with energy reforms, freight transport, and job creation. The World Bank benefits by getting interest, policy power, and access to markets through its private subsidiary, the International Finance Corporation (IFC). International corporations invest alongside private companies to get into state-run industries like energy and logistics. People are worried that South Africa's economy won't be stable in the long run if it relies too much on foreign loans. Redge Nkosi, an economist, told SABC News what would happen if South Africa's reform fails: it would get weaker, and foreign investors would have an easier time taking advantage of locals. The World Bank division director for South Africa, Satu Kahkonen, and the Minister of Finance, Enoch Godongwana, believe the loan will help the country's growth through reforms. Countries like Nigeria and Burkina Faso are cutting debt and reducing foreign loan dependency. However, Africa's total debt load keeps escalating to over a trillion. Leaders at the African Union (AU) at the debt conference in Lomé, Togo, from 12 to 14 May 2025, urged the International Monetary Fund (IMF) to swiftly alter Special Drawing Rights (SDRs) to improve the utility and equity of debt relief. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news
Zawya
30-04-2025
- Business
- Zawya
Eswatini: World Bank Supports Fiscal and Private Sector Reforms for Resilient Growth
The World Bank Board of Executive Directors approved a Development Policy Loan (DPL) operation to support the Kingdom of Eswatini's efforts to strengthen fiscal governance, foster private sector development, and enhance energy security and climate resilience. This is the first in a programmatic series of two operations. Eswatini faces critical constraints in achieving broad-based economic growth, efficient public resource allocation, and poverty reduction. The reforms supported under this operation are expected to contribute to job creation, poverty alleviation and better social outcomes over the medium to long term. 'The operation is aligned with key national priorities such as youth employment, digital transformation, and the transition to sustainable energy, all of which are essential drivers of inclusive growth,' said Satu Kahkonen, World Bank Division Director for Eswatini. This $100 million policy loan supports Eswatini's reform agenda as outlined in the country's National Development Plan (2023–2028) and Programme of Action 2024. The policy actions supported by the loan will assist Eswatini to mobilize private capital and accelerate energy access. The operation builds on the momentum of the previous DPF series (2021–2022), as well as extensive technical assistance and analytical work conducted by the World Bank in Eswatini. 'This operation comes at a critical time, as the Government of Eswatini implements a policy agenda inspired by the Sibaya People's Parliament, focused on economic growth, job creation, and improved service delivery,' said Honourable Neal Rijkenberg, Minister of Finance of the Kingdom of Eswatini. 'We welcome the World Bank's support as we work to uplift the livelihoods of EmaSwati and deliver on our development objectives.' The DPL supports reforms across three key pillars: (i) Strengthening fiscal and public financial management by enhancing debt transparency and management, reducing the accumulation of public expenditure arrears, and improving the handling of volatile revenues from the Southern African Customs Union (SACU); (ii) Enhancing private sector competitiveness by improving the business environment, reducing barriers to market entry, promoting digital payment systems, and increasing access to export markets for local firms; (iii) Improving energy security and climate resilience by accelerating domestic renewable energy development, promoting private sector participation in the electricity market, and enhancing the resilience of infrastructure and vulnerable households to climate-related shocks. Distributed by APO Group on behalf of The World Bank Group.
Zawya
14-02-2025
- Business
- Zawya
World Bank Expands Support to Electrify Rural Eswatini, Reaching 200,000 People
A new World Bank financed project is helping set Eswatini on the path to universal energy access by 2030. The Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) project for Eswatini will help the country reach the remaining 12% of the population with electricity access, ensuring that households in the most remote and disadvantaged areas benefit from improved access to energy and greater economic opportunities. 'This initiative is about the people of Eswatini, ensuring that every Liswati has access to electricity. Eswatini remains committed to universal energy access, as reaffirmed in our endorsement of the Dar es Salaam Energy Declaration at the recent Mission 300 Africa Energy Summit,' says Eswatini's Deputy Prime Minister, Honorable Thulisile Dladla. The newly announced support builds on the ongoing Network Reinforcement and Access Project Eswatini. It will follow an integrated approach for electrification following the country's Rural Electrification Plan and the National Energy Policy 2018. ASCENT Eswatini aims to provide electricity access to 200,000 people, ensuring that 50,000 new households are connected to electricity over the next five years. This represents a 20% increase from the 249,014 households connected in 2023. The initiative will utilize both grid and off-grid solutions to expand energy access, particularly in underserved rural communities, unlocking economic opportunities and improving the quality of life for Emaswati. The project will also provide critical technical expertise for assessments and studies aimed at increasing energy security, improving the sector's financial viability, strengthening planning, and building capacity in support of the government's goal of ensuring universal access to electricity for Emaswati by 2030. 'The ASCENT Eswatini project deepens the World Bank's engagement in supporting the country's development priorities. Expanding energy access is vital for economic growth, better livelihoods, and improved service delivery. We remain committed to supporting Eswatini to achieve universal electricity access by 2030, aligning with global efforts for equitable and sustainable energy solutions,' says World Bank Country Director for Eswatini, Satu Kahkonen. ASCENT Eswatini is the nineth phase of the ASCENT program developed by the World Bank for Eastern and Southern Africa. It has received $39 million in concessional funding from the International Development Association (IDA), a loan of $51 million from the International Bank for Reconstruction and Development (IBRD), and a performance-based grant of $10 million from the Livable Planet Fund (LPF1). ASCENT Eswatini will help Eswatini be among a handful of African countries to achieve Sustainable Development Goal 7 by 2030 while substantially increasing the share of renewable energy in its energy mix. 'By addressing these critical areas, the ASCENT Eswatini project will not only bolster energy access but also play a pivotal role in advancing Eswatini's development goals by improving living standards and fostering economic growth through the provision of reliable, inclusive, sustainable and clean energy,' says Eswatini's Minister of Economic Planning and Development, Honorable Thambo Gina.
