World Bank Gives South Africa Funds to Resolve Energy Crisis

World Bank will loan South Africa 1 billion Dollars to help the country resolve its energy crisis as it battles with its worst-ever power cuts.

The power cuts have existed since 2007 but have escalated in recent years, causing blackouts of up to 16 hours a day.

According to World Bank, the frequent power cuts have severely impacted South Africa’s economy, slowing its GDP growth by nearly 3%.

World Bank said the loan will allow South Africa to reform the country’s state-owned power company, Eskom, which has more than 26 billion Dollars of debt.

More than 80% of South Africa’s electricity is generated by coal-fired power.