The R5 billion loan Transnet has secured through Brics is guaranteed by the national government, which is under increasing pressure to address its finances, failing service delivery and infrastructure investment.
Lending more money to Transnet while it is still in a deep fiscal hole due to failures in management during the State Capture period is counterintuitive.
Mining companies that are heavily reliant on South Africa’s rail infrastructure cannot wait for Transnet to restructure itself.
The longer it takes Transnet to allow private rail operators, the more economic growth South Africa will lose out on.
- Read the full column here: "Lending Transnet utility R5 billion is a bad idea."
