Configure:

const xhrefSvgLoader = require('xhref-svg-loader');

modules.exports = {
  modules: {
    rules: [
      {
        issuer: { and: [/\.(js|ts|md)x?$/u] },
        test: /\.svg$/u,
        use: [
          {
            loader: 'babel-loader',
          },
          {
            loader: 'xhref-svg-loader',
            options: {
              dir: '/icons',
            },
          },
        ],
        exclude: /\.animated.svg$/u, // mark animated svg for excluding

      }
    ]
  },
  resolveLoader: {
    alias: {
      'xhref-svg-loader': xhrefSvgLoader,
    }
  }
}

and

// declaration.d.ts
declare module '*.svg' {
  const content: React.FunctionComponent<React.SVGAttributes<SVGElement>>;
  export default content;
}

and (tsconfig.json)

{
  "include": [
    "declaration.d.ts"
  ]
}