Export Development Canada (EDC), which helps North American companies to develop export opportunities, has provided Transnet, South Africa’s national rail operator, with a $450 million loan, it emerged on Monday.

This money is meant for the acquisition of rail equipment from the Quebec-based Bombardier, Canadian Business reported on Monday.

Transnet recently granted $1.2 billion contract to Bombardier Transportation South Africa, to take delivery of 240 TRAXX dual-voltage locomotives.

The EDC said the Transnet the deal with Bombardier helps to “showcase Canadian capability to build and deliver on landmark projects worldwide, Canadian Business reported on Monday.

“South Africa offers significant opportunities for Canadian companies, especially those in the business of infrastructure,” Canadian Business quoted Carl Burlock, EDC’s senior vice-president, financing and investments, as having said.

“By supporting Canadian foreign investment in South Africa with this level of financing, EDC is demonstrating its willingness to back Canadian companies that want to do business in the area,” Burlock added.

Burlock said South Africa has been identified by the federal government of Canada as a strategic market for Canada.
South Africa is also considered a priority by the EDC, which expects to have permanent representation in Johannesburg by this summer, Canadian Business reported.