The 10-year loan is part of a recently announced €900m EIB investment programme in South Africa, which will be distributed among public and private organisations in order to support economic development.

Sonae Novobord, a subsidiary of Sonae Industria, has said that it plans to use the loan to double its Mpumalanga facility’s production capacity for particleboard, which is used in kitchens, other furniture and the building industry.