The Finance and Public Enterprises Ministers have agreed to issue Transnet with a R47 billion guarantee facility effective immediately to support its recovery plan and meet its immediate debt obligations. This as the embattled ports and freight rail entity faces significant operational, financial and governance challenges including congestion at three of the country’s major ports.
South African ports have been battling congestion and delays due to equipment and port infrastructure failures resulting in billions worth of goods currently unable to berth into ports. National Treasury says Transnet will drawdown an initial amount of R22.8 billion from the R47 billion guarantee facility to deal with immediate liquidity matters such as settling maturity debt.
Government says a Guarantee Framework Agreement between National Treasury, Public Enterprises, and Transnet will include strict guarantee conditions that will be continuously be reviewed and amended if/when necessary.
It says any further drawdowns will be subject to Transnet meeting its conditions. Government says is confident that the implementation of the Transnet Recovery Plan will be sufficient to resolve the entity’s challenges going forward.
In other news – Legendary R&B singer Joe Thomas coming to SA
Legendary R&B star Joe Thomas will be coming to South Africa in April 2024 and will be visiting three different provinces in the country on his Mzansi tour, Sunday World reported.
The American singer, songwriter, and record producer made hit-after-hit in the 90s and early 2000s. He is best known for his timeliness hit songs including I wanna Know, If I Was Your Man, Treat Her Like a Lady, I Don’t Wanna Be a Player, and more. He is said to be returning to South Africa early next year and will reportedly be in Cape Town, Pretoria, and the North West. Read more