Japan will extend about $400 million in fresh yen loans over the next five years to help South Africa rebuild its ailing economy under new President Thabo Mbeki, government sources said Tuesday.
The sources said that Japan send a government mission to South Africa as early as this summer to explore infrastructure and other development projects to be financed by low-interest, official loans.
The sources also said that although South Africa is not eligible to receive Japanese grant-in-aid because of its relatively high per capita income, Tokyo will extend such official development assistance to Pretoria as an exception to help South Africa's poor black majority.