The World Bank is set to loan South Africa one billion dollars to help the country resolve its energy crisis as it battles with its worst-ever power cuts.
The World Bank said in a statement on Wednesday, after its board approved the loan, that there has been power since 2007 but they have escalated in recent years, causing blackouts of up to 16 hours a day.
According to the World Bank, the frequent power cuts have severely impacted South Africa’s economy, slowing its GDP growth and the country’s goal of transitioning to a just and low carbon economy.
More than 80% of South Africa’s electricity is generated by burning coal. As a result, the country is ranked as the world’s 14th largest emitter of carbon dioxide.
The World Bank said that the loan will allow South Africa to reform the country’s state-owned power company, Eskom, which has more than twenty six billion dollars of debt.