South Africa’s embattled state-owned airline is open to outside investment and in talks with a number of potential partners, President Cyril Ramaphosa said on Monday.
The economy of the African continent’s most industrialized nation has come under ever growing pressure as the government grapples with lacklustre growth, high unemployment and a heavy debt burden, especially from state-owned enterprises such as South African Airways (SAA) and power firm Eskom.
“South African Airways is one of those state-owned enterprises that has relied on lots of state bailouts,” Ramaphosa told the FT Africa conference in London.
In September, the cash-strapped national airline said a government cash injection of 5.5 billion rand ($372 million) had been approved for the 2019/20 financial year but that it still needed more money.
The government is due to publish a number of key papers and decisions in the coming days: a special paper laying out how to rescue Eskom and who will be the utility’s new chief executive as well as the country’s long-term energy plan, the so-called the Integrated Resource Plan (IRP).