The New Development Bank (NDB) has approved a $1 billion loan, about R17.34bn, to help fund the fight against the Covid 19 pandemic.
“The program aims to support South Africa in its efforts to curb the spread of Covid-19 and control the human, social and economic losses that caused the outbreak,” Treasury said on Saturday.
The program will contribute to the provision of essential health care resources and the strengthening of the social safety net in South Africa. The Treasury says benefits include improving the public health and emergency health system, as well as facilitating socio-economic recovery.
The bank’s board has previously welcomed the establishment of an emergency facility to assist member states. Brazil, Russia, India, China and South Africa are part of Brics. Emergency loans to member states can be used to finance expenditure directly related to the fight against Covid-19, as well as to support governments to put in place measures that will lead to economic recovery.
“The National Treasury welcomes the approval of the loan and works with the NDB on the final technical and administrative requirements. The details will be announced as soon as the process is complete. “