The transport ministry announced on Thursday that the South African government had agreed to provide a 51 billion rand ($2.8billion) guarantee facility for Transnet, a state-owned logistics company in financial trouble.

Transnet has been struggling to provide adequate rail freight and port services due to equipment shortages, maintenance backlogs caused by under-investment and cable theft.

The package includes a 41 billion rand Guarantee for Transnet’s Funding Requirements in 2025/26, 2026/27 and a guarantee of 10 billion rands to help Transnet service its debt and make capital investment.

Transnet stated in a press release that it would be able to continue its strategic rail and ports reforms with the help of this support.

(source: Reuters)