PRETORIA, July 28 (NNN-SANEWS) — The South African Government has approved two additional guarantees totalling R94.8 billion for Transnet to help the state-owned logistics company meet its debt obligations, maintain adequate liquidity, and mitigate the risk of further credit rating downgrades.
The first guarantee, worth R48.6 billion, is intended to ensure Transnet can meet all debt redemptions over the next five years, and ensure that the entity also maintains sufficient liquidity levels.
“Government has also considered the impact of the credit downgrades on Transnet’s existing debt, and has therefore also approved R46.2 billion for it to mitigate the risks of such ratings actions on its debt. This additional guarantee support for Transnet amounts to R94.8 billion,” the Department of Transport said in a statement on Sunday.
This latest support follows the R51 billion in guarantees approved by government on May 22, 2025, which included R41 billion to cover funding needs for 2025/26 to 2026/27, and R10 billion for liquidity management.
On June 12, 2025, the Minister of Transport, Barbara Creecy, announced that government has initiated a process to allocate additional guarantees to Transnet.
“Government will continue to work with Transnet to ensure operational and financial improvements in the company, and to accelerate implementation of reforms for the logistics sector, including Private Sector Participation,” the department said. — NNN-SANEWS
