Summary
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement seeks to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the security of electricity supply. It also aims to address the problem of municipal debt, which recently escalated to R94bn in January 2025.
View DetailsIs it working?
While we are witnessing more days free of load shedding, it is difficult to attribute this solely to the debt-relief arrangement, particularly given the high take-up of rooftop solar and other off-grid solutions. What is important is that Eskom is now able to conduct more efficient and thorough maintenance. However, in the 2024 budget, National Treasury proposed to reduce the allocations of R78bn in 2023/24 and R66bn in 2024/25 by R2bn each year due to Eskom's failure to dispose of the Eskom Finance Company by 31 March 2024, which is part of the conditionality attached to debt relief. Another major problem remains municipal debt. The conditionality included a debt-relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions. However, this does not appear to be working effectively as municipal debt is rising faster than anticipated. Eskom says 72 municipalities are part of the programme, but only 4% are compliant. This is why Eskom, the Department of Electricity and Energy, National Treasury and SALGA are devising a new intervention.
Actions
Government processes to enable the Eskom bailout, including the legislation, were completed relatively efficiently and quickly. In addition, with the appointment of new Eskom CEO Dan Marokane in March, all systems are in place for the power utility to pursue maintenance and stability of power supply.
Are there plans?
The relief is divided into advances of R78bn in 2023/24, R66bn in 2024/25 and R40bn in 2025/26. We await to see whether parliament will pass the 2025 budget which replaces the last R70bn debt takeover with R40 billion in 2025/26 and R10bn in 2028/29.
Is it on the agenda?
The bill making provision for Eskom's R254bn debt relief has been signed into law and Eskom is receiving the funds in tranches. National Treasury has also implemented the municipal debt relief programme whereby municipalities could have their debt written off over three years if they comply with 14 conditions. The 2025 Eskom Debt Relief Amendment Bill awiats parliamentary approval.
Goals
There has been considerable progress on the legislative side and the bills relating to the relief have been enacted. National Treasury has provided R44bn (of which R16bn was converted to equity after Eskom complied with all the conditions for the first quarter) of the R78bn allocated for 2023/24.
Summary
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement aimed to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the security of electricity supply. It was also designed to to address the problem of municipal debt, which recently escalated to R94bn in January 2025.
View DetailsIs it working?
While we are witnessing more days free of load shedding, it is difficult to attribute this solely to the debt-relief arrangement, particularly given the high take-up of rooftop solar and other off-grid solutions. What is important is that Eskom has been able to conduct more efficient and thorough maintenance and improve reliability of power plants. Further to the effectiveness of conditions, in the 2024 budget, National Treasury proposed to reduce the allocations of R78bn in 2023/24 and R66bn in 2024/25 by R2bn each year due to Eskom's failure to dispose of the Eskom Finance Company by 31 March 2024. That was part of the conditionality attached to debt relief. There are concerns that the amended bill will allow Eskom to receive relief without clear accountability requirements. Another major problem remains municipal debt. The conditionality included a debt-relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions. However, this does not appear to be working effectively as municipal debt is rising faster than anticipated and most are failing to comply with conditions. This is why Eskom, the Department of Electricity and Energy, National Treasury and SALGA are devising a new intervention.
Actions
Government processes to enable the Eskom bailout, including the legislation, were completed relatively efficiently and quickly. The amended debt relief bill however is to be assented to by President Cyril Ramaphosa. Municipal debt owed to Eskom (R94bn) remainds a huge threat to its financial sustainability and is still to be solved.
Are there plans?
The relief was initially divided into advances of R78bn in 2023/24, R66bn in 2024/25 and R40bn in 2025/26. The Eskom Debt Relief Amendment Bill was passed by Parliament on 30 July 2025, which now shifts support from a planned R70bn debt takeover to a restructured R90.2bn loan package. Disbursements include R80.2bn in 2025/26 and R10bn in 2028/29 to cover a US bond maturing in May 2028. The loans will be interest-bearing and linked to performance metrics rather than rigid conditionality.
Is it on the agenda?
The bill making provision for Eskom's R254bn debt relief has been signed into law and Eskom is receiving the funds in tranches. This bill was amended in 2025 to restructure debt relief package and removes a section that ties disbursements to strict conditions. National Treasury has also implemented the municipal debt relief programme whereby municipalities could have their debt written off over three years if they comply with 14 conditions.
Goals
To attach strict conditionality to the bailout of Eskom.
Summary
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement aimed to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the security of electricity supply. It was also designed to to address the problem of municipal debt, which recently escalated to R94bn in January 2025.
View DetailsIs it working?
While we are witnessing more days free of load shedding, it is difficult to attribute this solely to the debt-relief arrangement, particularly given the high take-up of rooftop solar and other off-grid solutions. What is important is that Eskom has been able to conduct more efficient and thorough maintenance and improve reliability of power plants. Further to the effectiveness of conditions, in the 2024 budget, National Treasury proposed to reduce the allocations of R78bn in 2023/24 and R66bn in 2024/25 by R2bn each year due to Eskom's failure to dispose of the Eskom Finance Company by 31 March 2024. That was part of the conditionality attached to debt relief. There are concerns that the amended bill will allow Eskom to receive relief without clear accountability requirements. Another major problem remains municipal debt. The conditionality included a debt-relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions. However, this does not appear to be working effectively as municipal debt is rising faster than anticipated and most are failing to comply with conditions. This is why Eskom, the Department of Electricity and Energy, National Treasury and SALGA are devising a new intervention.
Actions
Government processes to enable the Eskom bailout, including the legislation, were completed relatively efficiently and quickly. The amended debt relief bill however is to be assented to by President Cyril Ramaphosa. Municipal debt owed to Eskom (R94bn) remainds a huge threat to its financial sustainability and is still to be solved.
Are there plans?
The relief was initially divided into advances of R78bn in 2023/24, R66bn in 2024/25 and R40bn in 2025/26. The Eskom Debt Relief Amendment Bill was passed by Parliament on 30 July 2025, which now shifts support from a planned R70bn debt takeover to a restructured R90.2bn loan package. Disbursements include R80.2bn in 2025/26 and R10bn in 2028/29 to cover a US bond maturing in May 2028. The loans will be interest-bearing and linked to performance metrics rather than rigid conditionality.
Is it on the agenda?
The bill making provision for Eskom's R254bn debt relief has been signed into law and Eskom is receiving the funds in tranches. This bill was amended in 2025 to restructure debt relief package and removes a section that ties disbursements to strict conditions. National Treasury has also implemented the municipal debt relief programme whereby municipalities could have their debt written off over three years if they comply with 14 conditions.
Goals
To attach strict conditionality to the bailout of Eskom.
Summary
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement seeks to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the security of electricity supply. It also aims to address the problem of municipal debt, which recently escalated to R74.5bn - ahead of estimates of R68bn.
View DetailsIs it working?
While we have recently witnessed more days free of load shedding, it is difficult to attribute this solely to the debt-relief arrangement particularly given the high take-up of rooftop solar and other off-grid solutions. What is important is that Eskom is now able to conduct more efficient and thorough maintenance. However, in the 2024 budget, NT proposed to reduce the allocations of R78bn in 2023/24 and R66bn in 2024/25 by R2 bn each year due to Eskom's failure to dispose of the Eskom Finance Company by 31 March 2024, which is part of the conditionality attached to debt relief. Another major problem remains municipal debt. The conditionality included a debt-relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions. However, this does not appear to be working effectively as municipal debt is rising faster than anticipated.
Actions
Government processes to enable the Eskom bailout, including the legislation, were completed relatively efficiently and quickly. In addition, with the appointment of new Eskom CEO Dan Marokane in March, all systems are in place for Eskom to pursue maintenance and stability of power supply.
Are there plans?
The relief is divided into advances of R78bn in 2023/24, R66bn in 2024/25 and R40bn in 2025/26.
Is it on the agenda?
The bill making provision for Eskom's R254bn bailout has been signed into law and Eskom is receiving the funds in tranches. NT has also implemented the municipal debt relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions.
Goals
There has been considerable progress on the legislative side and the bills relating to the relief have been enacted into law. National Treasury has provided R44bn (of which R16bn was converted to equity after Eskom complied with all the conditions for the first quarter) of the R78bn allocated for 2023/24.
Summary
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement seeks to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the security of electricity supply. It also aims to address the problem of municipal debt, which recently escalated to R74.5bn - ahead of estimates of R68bn.
View DetailsIs it working?
While we are witnessing more days free of load shedding, it is difficult to attribute this solely to the debt-relief arrangement, particularly given the high take-up of rooftop solar and other off-grid solutions. What is important is that Eskom is now able to conduct more efficient and thorough maintenance. However, in the 2024 budget, National Treasury proposed to reduce the allocations of R78bn in 2023/24 and R66bn in 2024/25 by R2bn each year due to Eskom's failure to dispose of the Eskom Finance Company by 31 March 2024, which is part of the conditionality attached to debt relief. Another major problem remains municipal debt. The conditionality included a debt-relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions. However, this does not appear to be working effectively as municipal debt is rising faster than anticipated. Eskom says 72 municipalities are part of the programme, but only 4% are compliant.
Actions
Government processes to enable the Eskom bailout, including the legislation, were completed relatively efficiently and quickly. In addition, with the appointment of new Eskom CEO Dan Marokane in March, all systems are in place for the power utility to pursue maintenance and stability of power supply.
Are there plans?
The relief is divided into advances of R78bn in 2023/24, R66bn in 2024/25 and R40bn in 2025/26.
Is it on the agenda?
The bill making provision for Eskom's R254bn debt relief has been signed into law and Eskom is receiving the funds in tranches. National Treasury has also implemented the municipal debt relief programme whereby municipalities could have their debt written off over three years if they comply with 14 conditions.
Goals
There has been considerable progress on the legislative side and the bills relating to the relief have been enacted. National Treasury has provided R44bn (of which R16bn was converted to equity after Eskom complied with all the conditions for the first quarter) of the R78bn allocated for 2023/24.
Summary
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement seeks to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the security of electricity supply. It also aims to address the problem of municipal debt, which recently escalated to R74.5bn - ahead of estimates of R68bn.
View DetailsIs it working?
While we are witnessing more days free of load shedding, it is difficult to attribute this solely to the debt-relief arrangement, particularly given the high take-up of rooftop solar and other off-grid solutions. What is important is that Eskom is now able to conduct more efficient and thorough maintenance. However, in the 2024 budget, National Treasury proposed to reduce the allocations of R78bn in 2023/24 and R66bn in 2024/25 by R2bn each year due to Eskom's failure to dispose of the Eskom Finance Company by 31 March 2024, which is part of the conditionality attached to debt relief. Another major problem remains municipal debt. The conditionality included a debt-relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions. However, this does not appear to be working effectively as municipal debt is rising faster than anticipated. Eskom says 72 municipalities are part of the programme, but only 4% are compliant.
Actions
Government processes to enable the Eskom bailout, including the legislation, were completed relatively efficiently and quickly. In addition, with the appointment of new Eskom CEO Dan Marokane in March, all systems are in place for the power utility to pursue maintenance and stability of power supply.
Are there plans?
The relief is divided into advances of R78bn in 2023/24, R66bn in 2024/25 and R40bn in 2025/26.
Is it on the agenda?
The bill making provision for Eskom's R254bn debt relief has been signed into law and Eskom is receiving the funds in tranches. National Treasury has also implemented the municipal debt relief programme whereby municipalities could have their debt written off over three years if they comply with 14 conditions.
Goals
There has been considerable progress on the legislative side and the bills relating to the relief have been enacted. National Treasury has provided R44bn (of which R16bn was converted to equity after Eskom complied with all the conditions for the first quarter) of the R78bn allocated for 2023/24.
Summary
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement seeks to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the security of electricity supply. It also aims to address the problem of municipal debt, which recently escalated to R74.5bn - ahead of estimates of R68bn.
View DetailsIs it working?
While we are witnessing more days free of load shedding, it is difficult to attribute this solely to the debt-relief arrangement, particularly given the high take-up of rooftop solar and other off-grid solutions. What is important is that Eskom is now able to conduct more efficient and thorough maintenance. However, in the 2024 budget, National Treasury proposed to reduce the allocations of R78bn in 2023/24 and R66bn in 2024/25 by R2bn each year due to Eskom's failure to dispose of the Eskom Finance Company by 31 March 2024, which is part of the conditionality attached to debt relief. Another major problem remains municipal debt. The conditionality included a debt-relief programme whereby municipalities could have their debt written off over three years if they complied with 14 conditions. However, this does not appear to be working effectively as municipal debt is rising faster than anticipated. Eskom says 72 municipalities are part of the programme, but only 4% are compliant.
Actions
Government processes to enable the Eskom bailout, including the legislation, were completed relatively efficiently and quickly. In addition, with the appointment of new Eskom CEO Dan Marokane in March, all systems are in place for the power utility to pursue maintenance and stability of power supply.
Are there plans?
The relief is divided into advances of R78bn in 2023/24, R66bn in 2024/25 and R40bn in 2025/26.
Is it on the agenda?
The bill making provision for Eskom's R254bn debt relief has been signed into law and Eskom is receiving the funds in tranches. National Treasury has also implemented the municipal debt relief programme whereby municipalities could have their debt written off over three years if they comply with 14 conditions.
Goals
There has been considerable progress on the legislative side and the bills relating to the relief have been enacted. National Treasury has provided R44bn (of which R16bn was converted to equity after Eskom complied with all the conditions for the first quarter) of the R78bn allocated for 2023/24.
Summary
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and Eskom.
View DetailsIs it working?
National Treasury is already implementing strict conditions for SOE bailouts.
Actions
Cabinet members who have requested guarantees for SOEs are now required to report the requests to Parliament once they have been considered by the minister of finance.
Are there plans?
Operational
Is it on the agenda?
In February 2023, National Treasury announced that government had developed a new framework for managing bailouts to state-owned companies to reduce fiscal risks and promote long-overdue reforms.
Goals
Government to attach greater conditionality to any form of bailout to SOEs.
Summary
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and Eskom.
View DetailsIs it working?
National Treasury is already implementing strict conditions for SOE bailouts.
Actions
Cabinet members who have requested guarantees for SOEs are now required to report the requests to Parliament once they have been considered by the minister of finance.
Are there plans?
Operational
Is it on the agenda?
In February 2023, National Treasury announced that government had developed a new framework for managing bailouts to state-owned companies to reduce fiscal risks and promote long-overdue reforms.
Goals
Government to attach greater conditionality to any form of bailout to SOEs.
Summary
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and Eskom.
View DetailsIs it working?
National Treasury is already implementing strict conditions for SOE bailouts.
Actions
Cabinet members who have requested guarantees for SOEs are now required to report the requests to Parliament once they have been considered by the minister of finance.
Are there plans?
Operational
Is it on the agenda?
In February 2023, National Treasury announced that government had developed a new framework for managing bailouts to state-owned companies to reduce fiscal risks and promote long-overdue reforms.
Goals
Government to attach greater conditionality to any form of bailout to SOEs.
Summary
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and Eskom.
View DetailsIs it working?
National Treasury is already implementing strict conditions for SOE bailouts.
Actions
Cabinet members who have requested guarantees for SOEs are now required to report the requests to Parliament once they have been considered by the minister of finance.
Are there plans?
Operational
Is it on the agenda?
In February 2023, National Treasury announced that government had developed a new framework for managing bailouts to state-owned companies to reduce fiscal risks and promote long-overdue reforms.
Goals
Government to attach greater conditionality to any form of bailout to SOEs.
Summary
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and Eskom.
View DetailsIs it working?
National Treasury is already implementing strict conditions for SOE bailouts.
Actions
Cabinet members who have requested guarantees for SOEs are now required to report the requests to Parliament once they have been considered by the minister of finance.
Are there plans?
Operational
Is it on the agenda?
In February 2023, National Treasury announced that government had developed a new framework for managing bailouts to state-owned companies to reduce fiscal risks and promote long-overdue reforms.
Goals
Government to attach greater conditionality to any form of bailout to SOEs.
Summary
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and Eskom.
View DetailsIs it working?
National Treasury is already implementing strict conditions for SOE bailouts.
Actions
Cabinet members who have requested guarantees for SOEs are now required to report the requests to Parliament once they have been considered by the minister of finance.
Are there plans?
Operational
Is it on the agenda?
In February 2023, National Treasury announced that government had developed a new framework for managing bailouts to state-owned companies to reduce fiscal risks and promote long-overdue reforms.
Goals
Government to attach greater conditionality to any form of bailout to SOEs.
Summary
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and Eskom.
View DetailsIs it working?
National Treasury is already implementing strict conditions for SOE bailouts.
Actions
Cabinet members who have requested guarantees for SOEs are now required to report the requests to Parliament once they have been considered by the minister of finance.
Are there plans?
Operational
Is it on the agenda?
In February 2023, National Treasury announced that government had developed a new framework for managing bailouts to state-owned companies to reduce fiscal risks and promote long-overdue reforms.
Goals
Government to attach greater conditionality to any form of bailout to SOEs.
Summary
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet's recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics sector.
View DetailsIs it working?
The conditions attached to the facility are meant to catalyse reforms, which by nature will take time. The impact of this facility (on the reform side) will therefore only be felt at a later stage. However, there are indications of some progress in the right direction. Despite calls for debt relief, even from Transnet itself, in the 2025 budget the Minister of Finance stated that Transnet’s performance has stabilised and is steadily improving.
Actions
National Treasury granted Transnet approval to use R14bn of the guarantee between December 2023 and March 2024 to pay off maturing debt. Earlier in 2024, the minister of public enterprises announced the appointment of Transnet’s new group CEO and group CFO, which should help the entity meet the conditions attached to the guarantee.
Are there plans?
Transnet will drawdown an initial amount of R22.8bn to deal with immediate liquidity matters such as settling maturity debt. Plans in place that will in part ensure that Transnet meets the conditions attached to the facility include the Transnet Recovery Plan, the Network Statement and the Freight Logistics Roadmap.
Is it on the agenda?
A Guarantee Framework Agreement between National Treasury, the erstwhile Department of Public Enterprises and Transnet was concluded, and the minister of finance included the facility during the 2024 Budget speech.
Goals
Transnet has already received approval to use a portion of the guarantee to pay off maturing debt. That said, National Treasury notes that the implementation of reforms in line with the guarantee conditions is slow.
Summary
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet's recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics sector. However, National Treasury notes that the implementation of reforms in line with the guarantee conditions is slow.
View DetailsIs it working?
The conditions attached to the facility are meant to catalyse reforms, which by nature will take time. The impact of this facility (on the reform side) will therefore only be felt at a later stage. However, there are indications of some progress in the right direction. Despite calls for debt relief, even from Transnet itself, in the 2025 budget the finance minister stated that Transnet’s performance had stabilised and was steadily improving.
Actions
National Treasury granted Transnet approval to use R14bn of the guarantee between December 2023 and March 2024 to pay off maturing debt. Earlier in 2024, the minister of public enterprises announced the appointment of Transnet’s new group CEO and group CFO, which should help the entity meet the conditions attached to the guarantee.
Are there plans?
Transnet will drawdown an initial amount of R22.8bn to deal with immediate liquidity matters such as settling maturity debt. Plans in place that will in part ensure that Transnet meets the conditions attached to the facility include the Transnet Recovery Plan, the Network Statement and the Freight Logistics Roadmap.
Is it on the agenda?
A Guarantee Framework Agreement between National Treasury, the erstwhile Department of Public Enterprises and Transnet was concluded, and the minister of finance included the facility during the 2024 Budget speech.
Goals
To ensure Transnet meeets the guarantee conditions for its R47bn guarantee facility, of which a portion is to pay off matureing debt. he guarantee conditions is slow.
Summary
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet's recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics sector. However, National Treasury notes that the implementation of reforms in line with the guarantee conditions is slow.
View DetailsIs it working?
The conditions attached to the facility are meant to catalyse reforms, which by nature will take time. The impact of this facility (on the reform side) will therefore only be felt at a later stage. However, there are indications of some progress in the right direction. Despite calls for debt relief, even from Transnet itself, in the 2025 budget the finance minister stated that Transnet’s performance had stabilised and was steadily improving.
Actions
National Treasury granted Transnet approval to use R14bn of the guarantee between December 2023 and March 2024 to pay off maturing debt. Earlier in 2024, the minister of public enterprises announced the appointment of Transnet’s new group CEO and group CFO, which should help the entity meet the conditions attached to the guarantee.
Are there plans?
Transnet will drawdown an initial amount of R22.8bn to deal with immediate liquidity matters such as settling maturity debt. Plans in place that will in part ensure that Transnet meets the conditions attached to the facility include the Transnet Recovery Plan, the Network Statement and the Freight Logistics Roadmap.
Is it on the agenda?
A Guarantee Framework Agreement between National Treasury, the erstwhile Department of Public Enterprises and Transnet was concluded, and the minister of finance included the facility during the 2024 Budget speech.
Goals
To ensure Transnet meeets the guarantee conditions for its R47bn guarantee facility, of which a portion is to pay off matureing debt. he guarantee conditions is slow.
Summary
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet's recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics sector.
View DetailsIs it working?
The conditions attached to the facility are meant to catalyse reforms, which by nature will take long. The impact of this facility (on the reform side) will thus only be felt at a later stage. However, there are indications of some progress in the right direction.
Actions
NT granted Transnet approval to use R14bn of the guarantee between December 2023 and March 2024 to pay off maturing debt. Earlier in 2024, the minister of public enterprises announced the appointment of Transnet’s new group CEO and group CFO which should help the entity meet the conditions attached to the guarantee.
Are there plans?
Transnet will drawdown an initial amount of R22.8bn to deal with immediate liquidity matters such as settling maturity debt. Plans in place which will in part ensure that Transnet meets the conditions attached to the facility include the Transnet Recovery Plan, the draft Network Statement, and the Freight Logistics Roadmap.
Is it on the agenda?
A Guarantee Framework Agreement between National Treasury, the Department of Public Enterprises and Transnet has been concluded, and the minister of finance mentioned the facility during the 2024 Budget speech.
Goals
Transnet has already received approval to use a portion of the guarantee to pay off maturing debt. That said, National Treasury notes that the implementation of reforms in line with the guarantee conditions is slow.
Summary
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet's recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics sector.
View DetailsIs it working?
The conditions attached to the facility are meant to catalyse reforms, which by nature will take time. The impact of this facility (on the reform side) will therefore only be felt at a later stage. However, there are indications of some progress in the right direction.
Actions
National Treasury granted Transnet approval to use R14bn of the guarantee between December 2023 and March 2024 to pay off maturing debt. Earlier in 2024, the minister of public enterprises announced the appointment of Transnet’s new group CEO and group CFO, which should help the entity meet the conditions attached to the guarantee.
Are there plans?
Transnet will drawdown an initial amount of R22.8bn to deal with immediate liquidity matters such as settling maturity debt. Plans in place that will in part ensure that Transnet meets the conditions attached to the facility include the Transnet Recovery Plan, the draft Network Statement and the Freight Logistics Roadmap.
Is it on the agenda?
A Guarantee Framework Agreement between National Treasury, the Department of Public Enterprises and Transnet has been concluded, and the minister of finance included the facility during the 2024 Budget speech.
Goals
Transnet has already received approval to use a portion of the guarantee to pay off maturing debt. That said, National Treasury notes that the implementation of reforms in line with the guarantee conditions is slow.
Summary
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet's recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics sector.
View DetailsIs it working?
The conditions attached to the facility are meant to catalyse reforms, which by nature will take time. The impact of this facility (on the reform side) will therefore only be felt at a later stage. However, there are indications of some progress in the right direction.
Actions
National Treasury granted Transnet approval to use R14bn of the guarantee between December 2023 and March 2024 to pay off maturing debt. Earlier in 2024, the minister of public enterprises announced the appointment of Transnet’s new group CEO and group CFO, which should help the entity meet the conditions attached to the guarantee.
Are there plans?
Transnet will drawdown an initial amount of R22.8bn to deal with immediate liquidity matters such as settling maturity debt. Plans in place that will in part ensure that Transnet meets the conditions attached to the facility include the Transnet Recovery Plan, the draft Network Statement and the Freight Logistics Roadmap.
Is it on the agenda?
A Guarantee Framework Agreement between National Treasury, the Department of Public Enterprises and Transnet has been concluded, and the minister of finance included the facility during the 2024 Budget speech.
Goals
Transnet has already received approval to use a portion of the guarantee to pay off maturing debt. That said, National Treasury notes that the implementation of reforms in line with the guarantee conditions is slow.
Summary
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet's recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics sector.
View DetailsIs it working?
The conditions attached to the facility are meant to catalyse reforms, which by nature will take time. The impact of this facility (on the reform side) will therefore only be felt at a later stage. However, there are indications of some progress in the right direction.
Actions
National Treasury granted Transnet approval to use R14bn of the guarantee between December 2023 and March 2024 to pay off maturing debt. Earlier in 2024, the minister of public enterprises announced the appointment of Transnet’s new group CEO and group CFO, which should help the entity meet the conditions attached to the guarantee.
Are there plans?
Transnet will drawdown an initial amount of R22.8bn to deal with immediate liquidity matters such as settling maturity debt. Plans in place that will in part ensure that Transnet meets the conditions attached to the facility include the Transnet Recovery Plan, the draft Network Statement and the Freight Logistics Roadmap.
Is it on the agenda?
A Guarantee Framework Agreement between National Treasury, the Department of Public Enterprises and Transnet has been concluded, and the minister of finance included the facility during the 2024 Budget speech.
Goals
Transnet has already received approval to use a portion of the guarantee to pay off maturing debt. That said, National Treasury notes that the implementation of reforms in line with the guarantee conditions is slow.