The bank wants to support the country's reforms to split struggling power firm Eskom and to transition to a low carbon economy, it said in a statement.
Marie Francoise Marie-Nelly, the World Bank's director for South Africa, had told Reuters last month that the loan was under discussion and could come soon.
In Wednesday's statement, Marie-Nelly said reforms the government had launched would "benefit the people of South Africa - particularly the most vulnerable households - the economy, the environment, and advance the energy transition".
The World Bank logo is seen at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, U.S., April 13, 2023. REUTERS/Elizabeth Frantz/File Photo Acquire Licensing Rights
Eskom's coal-fired power stations routinely break down, leading to outages of up to 10 hours a day.
Several plants breached government emissions regulations earlier this year, according to a Reuters analysis published in September.
