Guarantees in place to keep Transnet liquid
Government approves billion rand guarantees
SOUTH AFRICA: Moving to stabilise Transnet’s financial situation and service the State Owned Entity’s debt, the Government has approved an R48.6 billion guarantee to ensure sufficient liquidity over the next five years.
Government has also considered the impact of the credit downgrades on Transnet’s existing debt, and has also approved R46.2 billion for it to mitigate the risks of such ratings actions on its debt; bringing the full guarantee amount to R94.8 billion.
This follows the approval of an allocation of R51 billion in guarantees to Transnet on 22 May 2025.
The latest allocation includes R41.0 billion for the funding requirements for 2025/26-2026/27, and R10.0 billion for liquidity management purposes. The decision follows an announcement made by Minister of Transport, Barbara Creecy in June that a process had been initiated to allocate the guarantees.
Issuing the statement today, the Department of Transport noted that the Government would “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.”
913