South Africa has welcomed a R7.6-billion “low-interest” loan from the World Bank to support the country’s procurement of 47-million Covid-19 vaccine doses, as the country remains the epicenter of the pandemic in Africa, with the highest cumulative numbers of infections and deaths.

As of Wednesday, 536 new Covid-19 cases have been identified in South Africa, which brings the total number of laboratory-confirmed cases to 3 979 126, and 25 deaths were reported.

Over 36.4-million vaccine doses have been administered as of Monday, with about 50.3% of adults and 29.9% of 12- to 17-year-olds vaccinated.

However, government wants to increase vaccine coverage to curb the spread of the virus and boost the country’s economic recovery.

The South African government requested assistance in the form of a loan to finance vaccine procurement contracts, which will retroactively finance the procurement of 47-million Covid-19 vaccine doses.

National Treasury acting director-general Ismail Momoniat explained that the loan formed part of government efforts to reduce debt service costs.

“South Africa welcomes this EUR 454.4-million World Bank loan to support Covid-19 vaccination as the spread of the virus continues to pose a threat to South Africa’s citizens, health system, and economic recovery. The loan forms part of government efforts to reduce debt service costs by making use of cheaper sources of funding through multilateral development banks, whilst supporting the health system to respond to Covid-19 through the roll-out of vaccines, critical research, and treatment measures," said Momoniat.

Treasury said the loan to procure vaccines would help government better cope with the pandemic and help create the fiscal space to strengthen the country’s health system and ensure financial and institutional sustainability.

World Bank country director for South Africa Marie Francoise Marie-Nelly said the loan would help with the country’s goal of vaccinating 70% of the population.