SA’s Transnet secures R51bn guarantee from Govt

MINISTERS have greenlit a fresh R51bn guarantee package for embattled state logistics company Transnet, said BusinessLive on Thursday.Transport Minister Barbara Creecy and Finance Minister Enoch Godongwana jointly approved the immediate financial lifeline designed to bolster capital expenditure and ensure debt servicing capabilities.The new backing builds upon December 2023’s R47bn guarantee, bringing total government support to nearly R100bn. Officials have structured the latest package as a R41bn facility covering two financial years through 2026/27, alongside a separate R10bn liquidity buffer for debt management and infrastructure spending.Timing of the announcement coincides with mounting pressure from credit agencies. Moody’s recently flagged Transnet for a possible ratings downgrade, highlighting worries over the company’s “unsustainable financial structure” and weakening cash position.The agency questioned whether the freight giant could honour commitments without state intervention, despite acknowledging R7bn in available credit lines and cash reserves.Government officials emphasise Transnet’s strategic importance to economic recovery, noting the company’s central role in freight movement across the country. Years of operational setbacks have hampered the logistics network, creating bottlenecks that constrain broader economic growth.The guarantee arrangement includes performance conditions tied to operational improvements and sector reforms. Treasury and transport departments will monitor compliance through a framework agreement, with funding releases contingent upon meeting specified targets.Officials expressed optimism that enhanced financial stability would accelerate the company’s ongoing transformation efforts.The post SA’s Transnet secures R51bn guarantee from Govt appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com