JOHANNESBURG (Reuters) – Funding for South Africa’s state firms will be raised in a way that has no effect on the national budget deficit, Finance Minister Nhlanhla Nene reiterated on Friday.
The state has said it would sell “non-essential assets” to raise 20 billion rand ($2 billion) for cash-strapped power utility Eskom. Earlier this month, the government approved an additional loan guarantee of 6.488 billion rand for similarly troubled national airline SAA.
“National Treasury … will continue to monitor all guarantees that have been issued to SOCs (state owned companies) closely,” Nene said after SAA’s annual general meeting.
“Further government support in the form of guarantees will only be provided on the basis of a sound business plans.”
($1 = 11.5900 rand)
