Government approves R94.8bn financial bailout to ease Transnet debt

Stephen Grootes speaks to Dr Nimrod Mbele, MD at Knowledge Anchor Group, about government's approval of R94.8 billion in guarantee support for Transnet, aimed at mitigating the state-owned utility's debt burden and supporting its capital investment program.

Listen to the interview in the audio player below.

Government has confirmed that it's approved R94,8 billion in guarantees to ensure Transnet debt redemptions are covered, and to help it deal with a lower credit rating.

This latest government bailout for the ailing state-owned utility follows that of R51 billion in guarantees to Transnet in May 2025.

The ailing state-owned utility will receive the financial bailout for the next five years.

Speaking to Stephen Grootes on The Money Show, Dr Nimrod Mbele, MD at Knowledge Anchor Group says the state cannot afford to keep bailing out SEO's like Transnet and Eskom.

"The problem with the financial injection in entities such as Transnet, increases the liability on the side of the state. We all know the states fiscus's are quite dry, and we need to an environment where we not just putting money, but we fast-track the reform processes."

- Dr Nimrod Mbele, MD - Knowledge Anchor Group

"We're looking at about R15bn-R17bn just out of interest which Transnet needs to fork out, year in, year out."

- Dr Nimrod Mbele, MD - Knowledge Anchor Group

"Unfortunately, the financial position of Transnet is likely to be dire, unless a greater move is done to restructure."

- Dr Nimrod Mbele, MD - Knowledge Anchor Group

Scroll to the top of the article to listen to the full interview.