South Africa has secured a 150-million-U.S.-dollar development policy loan from the OPEC Fund for International Development to support infrastructure reforms aimed at boosting economic growth and tackling unemployment.
In a statement issued on Wednesday, May 13, South Africa’s National Treasury said the funding would support critical structural reforms to improve the efficiency, resilience and sustainability of infrastructure services, particularly in the energy and freight transport sectors.
The Treasury noted that the agreement marks the first loan partnership between South Africa and the OPEC Fund, adding that the financing would help address persistent economic challenges, including low growth and high unemployment.
The announcement came a day after the government released new labour statistics showing that the country’s official unemployment rate had risen to 32.7 per cent in the first quarter of 2026, up from 31.4 per cent in the final quarter of 2025. The number of unemployed people now stands at 8.1 million.
According to the Treasury, the loan comes with a six-year maturity period, including a two-year grace period, and carries an interest rate linked to the six-month Secured Overnight Financing Rate plus 1.25 per cent.