SOEs are bleeding South Africa dry – and give nothing back

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Despite investing over R230 billion in state-owned companies, government has only recieved R1 million in return.

South Africa News, South Africa Headlines

Despite spending billions of rands on bailouts for state-owned enterprises (SOE), the government has received almost nothing in return.

Despite subjecting the nation to higher stages of load shedding, Eskom received the lion’s share of government bailouts – R181.6 billion – over the last five years whilst paying out no dividends. “Because of the structure of the debt relief, Eskom will not need further borrowing during the relief period. Government will finance the arrangement through the R66 billion baseline provision announced in the 2019 Budget, and R118 billion in additional borrowings over the next three years,” saidThe second worst-performing SOE was South African Airways (SAA), which paid out no dividend and got R37.1 billion in bailouts.

Denel and Transnet also received billions in bailouts whilst declaring no dividend, with the latter receiving close to R6 billion over the last financial year.

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