Transnet gets debt guarantee facility in the first phase of its turnaround.

The Treasury, which granted an R47 billion guarantee to Transnet on Friday, has tied its assistance to the condition that Transnet take specific actions for a turnaround and speed up reform and private participation in the logistics sector. 

Prospective lenders have also said that they would like to see “an executable plan with milestones” and certainty that the government will implement the National Logistics Roadmap if they are to continue their support of the company going forward. 

Transnet has R15 billion of debt redemptions by the end of March, followed by R12 billion in the financial year 2024/25. The government guarantee will assist it to roll over much of this at a slightly lower rate, Transnet said in response to questions.