Govt approves R94.8bn in guarantees to stabilise Transnet
The Department of Transport says the government has approved an additional R48.6 billion guarantee for Transnet amid concerns over its debt burden.
This comes amid ongoing efforts by the government to stabilise the ailing state-owned entity, which has been put on credit watch in recent months.
Transport spokesperson Collen Msibi said the government also approved R46.2 billion to mitigate risks of credit downgrades on Transnet’s existing debt.
This brings the total guarantee support for the state-owned entity to R94.8 billion.
“This followed the government’s approval of an allocation of R51 billion in guarantees to Transnet on 22 May 2025. The allocation comprised R41 billion for the funding requirements for 2025/26-2026/27 and R10 billion for liquidity management purposes,” said Msibi.
He said the government will continue to work with Transnet to ensure operational and financial improvements in the company and the reforms for the logistics sector, including private sector partnerships.
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