The hidden costs of $1.5 billion World Bank loan

Another round of debt-fuelled development that leaves the majority behind

- MICHAEL HELU

THE recent announcement that South Africa has secured a $1.5 billion loan from the World Bank has been met with applause from the National Treasury. Framed as a measure to "revitalise economic growth" and "modernise energy and transport infrastructure," it is positioned as a silver bullet for structural challenges.

But beneath the surface, this development presents a familiar and deeply troubling dilemma - one that strikes at the heart of working-class communities and the most precarious sectors of our economy.

History has taught us that loans from global financial institutions like the World Bank are rarely without strings. As Professor Patrick Bond and many economists critical of neoliberal globalisation have long argued, such loans are often tied to policy reforms that prioritise fiscal consolidation, debt repayment, and market liberalisation over social protection and redistributive justice.

The consequences will be dire, particularly for those already on the margins of our economy domestic workers, informal traders, farmworkers, EPWP workers, and unemployed youth - who are not just collateral; they are the primary victims.