The African Development Bank Group (www.AfDB.org) has approved a ZAR 18.85 billion ($1 billion) corporate loan to Transnet, South Africa’s major freight transport and logistics company, for its recovery and growth plans.

The 25-year loan approved by the Bank Group’s Board of Directors on Friday, 12 July 2024, is fully guaranteed by the government of South Africa. It will facilitate the first phase of the company’s ZAR 152.8 billion ($8.1 billion) five-year capital investment plan to improve its existing capacity ahead of expansion for the priority segments throughout the transport value chain.

Transnet has faced operational challenges mainly in the critical rail and port businesses resulting from underinvestment in infrastructure and equipment, theft and vandalism, and external shocks such as floods and the effects of the COVID19 pandemic.

The company is committed to addressing past challenges, fostering integrity, and enhancing efficiency within the organization. It has made progress in some key areas including reforms in governance procurement and financial management.

The recovery plan, launched in October 2023, seeks to rehabilitate the infrastructure and accelerate the relaunch of operations over 18 months, focusing on restoring operational performance and freight volumes to meet customer demands.

Following the approval, African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialisation Solomon Quaynor, emphasized the significance of this support: “Transnet, the custodian of South Africa’s critical transport and logistics infrastructure, plays an indispensable role in the economy of the country, ensuring a competitive freight system and serving as a gateway to the SADC region.”

He added: “Our partnership will enable Transnet to execute a comprehensive Recovery Plan (RP), addressing operational inefficiencies, particularly in rail and port sectors. It is aligned with South Africa’s strategic ‘Roadmap for Freight Logistics System,’ and overseen by the National Logistics Crisis Committee, chaired at the Presidency level. This initiative signifies our commitment to enhancing national logistics capabilities and driving sustainable economic growth.”

Transnet has been a client of the African Development Bank since 2010. The company employs more than 50,000 people and plays a critical role in integrating and connecting South Africa with the global economy. The company’s freight system’s activities contribute significantly to South Africa’s economy. Its operations serve as key gateways for trade within South Africa and with landlocked countries in the region, such as Botswana, Zambia, Zimbabwe, and the Democratic Republic of Congo through the Port of Durban.

Reacting to the approval, Michelle Phillips, Group Chief Executive of Transnet said: “We appreciate the support demonstrated by the African Development Bank, the loan extended by the bank will make a significant contribution to Transnet’s capital investment plan to stabilise and improve the rail network and to contribute to the broader South African economy. The accompanying grant funding to the loan will also greatly assist Transnet with to its energy efficiency efforts and with Infrastructure Project Preparation initiatives.”

The Board commended the Government of South Africa for its vision and commitment to reforms in Transnet as well as the country’s entire transport and logistics sectors. It also applauded Transnet for progress made in rolling out its compliance and governance improvement programme as well as its decarbonization and energy efficiency plans in line with its Net Zero Emission Strategy and Green Freight Strategy.

In addition to the corporate loan, the African Development Bank is contemplating two targeted grants, including $750,000 in technical support from the Sustainable Energy Fund for Africa (SEFA) – a multi-donor fund administered by the Bank – to improve energy efficiency and associated measures, in line with Transnet’s net zero plan. The second grant funding comprises $1 million from the Infrastructure Project Preparation Facility of the New Partnership for Africa’s Development (IPPF-NEPAD), for technical assistance to help accelerate railway reforms and address structural and regulatory inefficiencies.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contacts
African Development Bank:
Romaric Ollo Hien
Communications Department
African Development Bank
media@afdb.org

Transnet:
Ayanda Shezi
GM Group Corporate Affairs
email:  ayanda.shezi@transnet.net/mediadesk@transnet.net. 

About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

The United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (ECA), and the African Development Bank (AfDB) (www.AfDB.org), presented today the 2024 Africa Sustainable Development Report (ASDR), at an event held on the margins of the UN High-Level Political Forum for Sustainable Development in New York.

Scaled-up access to concessionary development financing, strengthened climate information and early warning systems, and economic reforms are amongst the key recommendations raised in the new ASDR, titled “Reinforcing the 2030 Agenda and Agenda 2063 and Eradicating Poverty in Times of Multiple Crises: The Effective Delivery of Sustainable, Resilient and Innovative Solutions.”

The report provides an in-depth review of African countries progress towards five sustainable development goals and their 32 targets to meet the 2030 Agenda and the African Union 2063 Agenda. The five SDGs under review are: ending poverty (Goal 1); eliminating hunger (Goal 2); combating climate change (Goal 13); promoting peaceful societies (Goal 16) and strengthening global partnerships (Goal 17).

The research shows that Africa is on track to reach only less than three of the 32 targets assessed in this report (ASDR-2024) and that setbacks have been recorded for 8 of them, with slow progress or status quo registered for the remaining targets.

“Advanced economies have rebounded from COVID-19, but many countries in Africa struggle with high debt, double-digit inflation, and limited access to crucial development and climate funding. Disparities in the Human Development Index are widening between top-ranking nations and those at the bottom, highlighting significant challenges across Africa despite some progress in recent decades.]” said Claver Gatete, ECA Executive Secretary.

Indeed, Official Development Assistance (ODA) to Africa increased by two percent in 2023, but the total ODA remains at 0.37 percent of donors’ combined Gross National Income, well below the 0.7 percent target agreed on by UN Member States. Given the short period remaining before the 2030 SDG deadline, most countries may fail to mobilize adequate resources to close their financing gap.

“African countries have made some significant progress in important areas, but we are running out of time,” stressed Matthias Naab, UNDP Africa Deputy Regional Director a.i. “It is imperative we reinforce partnerships and look at innovative solutions to stop the current deceleration – and even reversal in some areas – and work more closely with African countries and people to get back on track towards our Global Goals and the Africa We Want. And this report is key, as it provides a path to this critical acceleration.”

Africa has made strides in poverty reduction (goal 1), despite setbacks from crises like COVID-19, which increased poverty rates significantly, as in 2022, Africa accounted for more than half (54.8 percent) of people living in poverty worldwide. Efforts are underway to enhance social protection systems, which currently cover only 17.4 percent of the population, though still well below the global average. Access to drinking water has increased, on average, from 68.7 percent in 2015 to 72.9 percent, and basic sanitation services now reach 52% of the population, with ongoing efforts to meet global standards.

Efforts to combat hunger, undernourishment, and stunting (goal 2) in Africa are crucial. Despite challenges such as increased hunger affecting 281.6 million people in 2022, up by 11 million compared to 2021, initiatives are underway to address these issues and need urgent support. Measures include improving agricultural investment and aid to enhance food security.

Africa has demonstrated remarkable resilience and commitment to addressing climate change (goal 13), and efforts to enhance disaster risk reduction continue, though the number of countries having established national and local disaster risk reduction strategies remains at 29 out of 54 since 2015. Financing climate action in Africa is paramount but only $29.5 billion have been mobilized of the $2.8 trillion needed between 2020 and 2030 for African countries to implement their NDCs under the Paris Agreement.

“Financing remains a challenge for Africa. It needs between $118.2 billion and $145.5 billion per year to implement the continent’s climate action commitments and Nationally Determined Contributions. This requires the  development partners  to scale up their support, including by strengthening the system of public development banks focusing on enhancing productive capacities, infrastructure, and human capital development,  and for African countries  to  prioritize domestic resource mobilization  through reforms such as digitizing tax administration systems, implementing progressive taxation, and leveraging digital payment platforms,” explained Al Hamndou Dorsouma, Manager of the AfDB Climate Change and Green Growth Division.

In terms of governance (goal 16), some nations, such as Malawi, have taken significant measures to combat corruption, though it remains a significant challenge in many African countries, with stagnant progress and rising instances of bribery. Additionally, high illicit financial flows, totaling around $1.3 trillion in outflows and $1.1 trillion in inflows in 2020, continue to hinder the financing of key agendas, with Africa losing about $88.6 billion annually.

The ASDR also highlighted that key data gaps remain in many countries on the continent and recommends to policymakers and academics to include skills and capacity building in their priorities to be able to have a more accurate picture of the state of countries achievements and needs in terms of inclusive and sustainable development.

“This new report underscores African countries’ commitment and progress, but it also highlights the challenges that remain for us to shape up ‘The Africa We Want’. It stresses on the urgent need to accelerate sustainable development actions and the imperative for African countries to step up their efforts and empower communities for a more inclusive growth. But it also shows clearly how innovative financing and strengthened partnerships are key for countries to be able to redouble their efforts,” said Monique Nsanzabaganwa, Deputy Chairperson of the African Union.

To access all findings and read the full set of recommendations, please consult the 2024 Africa Sustainable Development Report: https://apo-opa.co/46deMtO.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

For further information or potential interviews, please contact:
Eve Sabbagh
UNDP Africa Strategic Communications Specialist, New York
eve.sabbagh@undp.org

Sophia Denekew
ECA Media Relations
denekews.uneca@un.org

Amba Mpoke-Bigg
AfDB Communications and External Relations Department
media@afdb.org

About UNDP: 
UNDP is the leading United Nations agency fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. Learn more at www.UNDP.org or follow @UNDP and @UNDPAfrica

The Xylem Egypt Plant, a joint venture between Xylem (www.Xylem.com) and the Tiba Manzalawi Group, has completed its first successful year of operation. Inaugurated in 2023 by Egypt’s Minister of Trade and Industry, Ahmed Samir, the international pump manufacturing site produces and assembles modern pumping equipment for Middle Eastern and African markets.

The Xylem Egypt Plant, located in 10th of Ramadan City outside Cairo, produces Split-Case Centrifugal pumps for various applications such as irrigation, HVAC, and commercial building services, and end-suction pumps for industry and irrigation. It’s a hub for manufacturing and assembling products from leading water brands such as Lowara, and Bell&Gossett.

While much of the factory’s output serves Egypt’s vibrant and growing market, it is growing to support the wider African and Middle Eastern markets. Xylem has been a part of the Egyptian story for over 50 years. In 2021, it opened a major office in the country to serve the region, followed two years later by opening the Xylem Egypt Plant.

Xylem is the first international company to produce state-of-the-art water pumps and related water technology equipment in Egypt—serving customers in irrigation, central heating and air conditioning, commercial building services, wastewater management, and numerous other applications in the industrial, manufacturing, and commercial sectors. The factory’s first phase covered 4,000 square metres with an annual production capacity of 2,000 to 4,000 water pumps, and plans to expand to 9,000 square metres.

Xylem has been a key partner for numerous Egypt projects, including the Abu Rawash, Gerza, and Alexandria treatment plants, the South Valley (Toshka) Irrigation Project, and providing equipment and design services for the Ministerial District of the New Administrative Capital), and the New Alamein City Downtown&Towers water systems.

The new plant was conceived in a joint venture with the Tiba Manzalawi Group, the leading regional manufacturer and provider of HVAC systems. Together, they established a reliable pipeline of Xylem brands, including complete units and spare parts.

This factory is the first in Egypt to produce water pumps on behalf of an international brand. Targeting both Egyptian and export markets, Xylem Egypt Plant creates substantial savings for the region through buying in local currency and shorter delivery times, The Xylem Egypt Plant also bolsters employment and further catalyses Egypt’s rapid growth and progress.

“One year and counting —the journey has been nothing short of incredible. In just one year, we’ve achieved so much together, and we’re grateful to everyone who has been involved. As we celebrate this milestone, we’re more committed than ever to Egypt through Xylem’s high-impact culture, says Vincent Chirouze, Managing Director at Xylem Africa.

“When we established the Xylem Egypt Plant, we wanted to show that Egypt can manufacture world-class products for international brands. A year later, we’ve exceeded our expectations, building and delivering top pump and HVAC solutions for our customers across North Africa and the Middle East. The factory shows that Egypt is a self-sustaining economic and industrial hub, deepening local industry and building manufacturing independence that is true to the Egyptian State’s vision,’ says Shady El Manzalawi, Group CEO at Tiba Manzalawi Group.

Distributed by APO Group on behalf of Xylem.

About Xylem:
Xylem (XYL) is a leading global water technology company committed to solving the world’s critical water, wastewater, and water-related challenges through technology, innovation, and expertise. Our more than 22,000 diverse employees delivered combined pro forma revenue of $7.3 billion in 2022. We are creating a more sustainable world by enabling our customers to optimize water and resource management and helping communities in more than 150 countries become water-secure. Join us in the effort at www.Xylem.com and Let’s Solve Water.

Network (www.Network.ae) to support digital payment transformation in EGBANK’s ATM acquiring business; Agreement underscores Network’s commitment to innovation in payment solutions to cater to evolving needs of Egyptian market.

Network International (Network), a leading enabler of digital commerce in the Middle East and Africa, has extended its ongoing strategic partnership with EGBANK to transform the bank’s ATM acquiring service. This partnership is a significant milestone in enhancing the banking experience for EGBANK’s customers and enabling the bank’s digital transformation with innovative solutions.

The partnership will leverage Network’s expertise to enhance EGBANK’s competitiveness in the Egyptian market. It also strengthens Network’s existing partnership with EGBANK with the introduction of payment technology and innovative solutions for enhancing consumer trust and convenience.  

Hossam El Sholkamy, Deputy CEO of EGBANK, said, “We are thrilled to enter a new phase of growth through the strategic partnership with Network International. Using Network’s expertise, we are shaping the market with new products and services that will facilitate our digital payment transformation, offering an elevated experience for our customers and emphasising our pivotal role in the Egyptian financial market.”

Dr. Reda Helal, Group Managing Director – Processing, Africa&Co-Head Group Processing at Network International, commented: “We are excited to extend our existing partnership with EGBANK to transform digital payments for their customers in the ATM acquiring side of the business. Implementing Network’s innovative solutions underlines the bank’s impact in the Egypt market by providing superior payment experiences. We look forward to capturing the opportunities that lie ahead and achieving new heights of success by working together.”

Distributed by APO Group on behalf of Network International.

Corporate Communications:
Network International
Dubai, UAE
Tel: +971 4 303 2431
Email: lambert.espedido@network.global

Srishti Soni
Burson; Dubai, UAE
Tel: 971-4-4507600; Fax: 971-4-4358040
Email: Srishti.Soni@bcw-global.com

About Network International:
Network International is the Middle East and Africa’s largest and leading digital payments company. Our purpose is to help businesses and economies grow by simplifying payments and commerce. We operate in 50+ countries serving governments, banks, fintechs, merchants and public sector companies. We have 2,000+ employees based in our markets serving over 200 financial institutions and 120,000+ merchants. 

About EGBANK:
EGBANK is the fastest growing bank in Egypt. Over the past seven years it has grown significantly at all levels, by doubling its assets and profits, as well as its network of branches and number of customers. EGBANK is the Bank of Youth since it launched a special platform for youth called MINT, and its main mission is to develop the skills and capabilities of Egyptian youth.

EGBANK was established in 1981, in accordance with Investment Law 43/1974 and its amendments. Since its establishment, EGBANK has witnessed stable growth over the years, and has maintained a strong level of profitability and portfolio quality.

Since the beginning of 2015, EGBANK has followed a smart competitive strategy that relies on the process of self-expansion in the Egyptian market and aspires to several goals, the most important of which is sustainability and achieving a distinguished banking experience for customers characterized by continuous development and supporting the culture of entrepreneurship.

Over the past few years, the bank has witnessed a great growth as a result of adopting an ambitious strategy for expansion and development, making it one of the most important banks and financial institutions operating in Egypt.