Sun. Jan 19th, 2020

iAfrica

Stay Smart About South Africa

Can South Africa’s Treasury Afford Another Bailout?

South Africa is scrambling to secure extra funding to rescue South African Airways (SAA), which last month entered a form of bankruptcy protection in a last-ditch bid to save the state-owned company and around 10,000 related jobs. SAA was promised $139 million from the government and lenders respectively. But while the lenders paid up, the Treasury has yet to establish a mechanism for identifying and dispersing its share. The airline is one of several state entities, including state power company Eskom, struggling with debt after nearly a decade of mismanagement.

SOURCE: REUTERS AFRICA | BUSINESS DAY LIVE