Zuko Komisa
Transnet to receive R47 billion from the National treasury.
National Treasury has granted Ports and Freight Rail Company Transnet an immediate R47 billion guarantee facility.
The Department of Public Enterprises and National Treasury jointly released a statement announcing this.
Ministers Pravin Gordhan and Enoch Godongwana said they are optimistic that the guarantee will help the entity, according to the statement.
“The financial support package provided for the entity is a R47 billion guarantee facility against which Transnet will drawdown an initial amount of R22.8 billion to deal with immediate liquidity matters such as settling maturity debt.
“Government has not considered an equity injection given that the budget for 2023/24 is closed and is confident that this guarantee facility alongside swift implementation of the Transnet Recovery Plan will be sufficient to resolve Transnet’s challenges.
“A Guarantee Framework Agreement between the National Treasury, Department of Public Enterprises, and Transnet will include strict guarantee conditions that will be continuously reviewed and amended when deemed necessary. Any further drawdowns will be subject to Transnet meeting these conditions,”
“Minister Godongwana is positive that the necessary reforms needed to put Transnet back on track can be achieved if the entity commits to meeting the strict conditionalities attached to the guarantee and quickly implementing the reforms informed by the National Logistics Crisis Committee.
“Minister Pravin Gordhan highlighted the fact that Transnet is critical to the South African economy. A well-functioning logistics company is particularly important given the geographical distribution of economic activity in the country, our reliance on commodity and other exports, as well as our distance from key export markets,”
The Department of Public Enterprises and National Treasury of South Africa
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