Transnet, Denel, and Sanral will receive government bailouts worth R30-billion. The support to Transnet is a big deal because the state-owned ports and freight rail operator hasn’t received government bailouts or government support for over 20 years.
Struggling state-owned enterprises (SOEs) have again approached the government with a begging bowl and have succeeded in getting more taxpayer-funded bailouts.
Transnet, Denel, Eskom, and the South African National Roads Agency Limited (Sanral) are SOEs that will either receive bailouts or some form of government support. This arguably flies in the face of the promise by finance minister Enoch Godongwana to show SOEs “tough love” when he was first appointed in August 2021.
Godongwana said the culture of SOEs relying on government bailouts for survival would end and that financial support to such entities would only be provided in exceptional circumstances.
In the Medium-Term Budget Policy Statement (MTBPS) on Wednesday 26 September, R30-billion was allocated to Transnet, Denel and Sanral. Eskom didn’t get additional financial support but the government unveiled a broad plan to take over a portion of Eskom’s debt, which is nearly R400-billion.
Ailing Transnet on the brink of becoming South Africa’s next Eskom
In a press briefing with journalists about…