The World Bank will give South Africa $1 billion to help the country fix its energy problem. South Africa is experiencing its worst-ever power outages.
There have been electricity cuts since 2007, but they have become worse recently, with periods of no electricity lasting up to 16 hours every day.
The World Bank says that the often power outages have really hurt South Africa’s economy and made their GDP growth slower.
The World Bank said in a statement that the loan supports South Africa in tackling its energy crisis and moving towards a fair and eco-friendly economy. The loan was approved by the board.
Most of South Africa’s electricity comes from burning coal. As a result, the country is considered the 14th biggest producer of carbon dioxide in the world.
The World Bank said that the loan will help South Africa improve its state-owned power company, Eskom, which owes more than $26 billion.
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World Bank lends $1 billion to South Africa to address electricity problem
