World Bank Approves $350M in Support of South Africa’s Independent Transmission Program
On 5 March 2026, the World Bank (WB) board of directors approved the South Africa Blended Finance Platform for Resilient Infrastructure Program to upgrade of its national electricity transmission network. The WB will contribute financing to the tune of USD 350 million for the Independent Transmission Program (#ITP), which has a total cost of USD 25 billion (R440B) and is to be implemented over ten years.
Over the past decade, South Africa has experienced anemic growth of about 1%, while the unemployment rate remains high at above 30%. One of the key reasons identified is the bottleneck in electricity supply, causing frequent load-sheddings that are stunting growth. In addition, the Program is projected to create nearly one million direct and indirect jobs.
“Investment in infrastructure is central to South Africa’s efforts to restore growth and create jobs. This operation supports the government’s agenda by helping mobilize private investment for infrastructure that improves services, strengthens competitiveness, and expands economic opportunity.“
WB South Africa Director Satu Kahkonen
The scope of the Program revolves around the installation of 14,000 kilometers of new power lines, while adding 54 GW of generating capacity. In line with its #decarbonization drive, the Government of South Africa aims to favor renewables, despite the fact that the country is endowed with rich reserves of coal.
Initially, seventeen companies or consortia expressed interest in the Program. Eventually, seven were retained after a qualification process that proclaimed the results in November 2025. The main contenders include China’s State Grid and Southern Grid, India’ Adani Power, France’s EDF, and Spain’s Cobra Group and Celeo Redes.
Local companies SOLA group and Mulilo Renewable Energy also entered the bidding. Based on a market sounding exercise, nearly half of local companies expressed their intention to partner with an overseas partner on this Program. The Bidding rules thus called for a minimum of 49% South African-based ownership and makes allowance for inclusion of historically disadvantaged individuals (HDI) such as women and youth.
“I am pleased to announce that National Treasury together with the World Bank are making significant progress with the Credit Guarantee Vehicle. The CGV, which will support massive investments in transmission infrastructure, will be incorporated as a company in the coming months. Next, we expect development partners to confirm their capital participation. We are targeting the CGV to be operational later this year.”
South Africa Finance Minister Enoch Godongwana
The Program establishes a new Credit Guarantee Vehicle (CGV) hosted by the state-owned Development Bank of Southern Africa to support the mobilization of private capital. The CGV will issue market-based credit guarantees to derisk the investments needed, while reducing reliance on sovereign guarantees. The CGV leverages #BlendedFinance to crowd in investors to share risk more efficiently and attract long-term capital at scale.
The GCV complements reforms under Operation Vulindella II — South Africa’s structural reform agenda — to unlock growth and investment. The Independent Transmission Program follows the Transmission Development Pla 2025-2034. It is also aligned with the Just Energy Transition (#JET) as the new transmission network is designed to make allowance for more renewable energy.