African Development Bank approves $1B loan to South Africa's state-owned rail and ports company

The African Development Bank says it has approved a $1 billion loan to South Africa’s state-owned rail and ports company, Transnet. The 25-year loan is wholly guaranteed by the South African government and will help finance the first phase of a $8.1 billion investment plan to improve the country’s ailing rail and port infrastructure. The bank announced the loan in a statement on Thursday. South Africa has the most industrialized economy in Africa, but its deteriorating rail and ports are seen as significant barriers to foreign business investment. Transnet is also one of several state-owned companies to previously come under scrutiny for corruption and mismanagement.