[LISTEN] Consortium of investors offer SAA R21bn loan for 51% stake

CapeTalk host John Maytham speaks to Alf Lees, the Democratic Alliance’s deputy finance spokesperson, about the deal.

CAPE TOWN – A consortium of local and international investors has offered a loan of R21 billion to South African Airways (SAA) in return for a 51% share.

Earlier in December, President Cyril Ramaphosa said there’s an agreement within the executive that the immediate priority for the government is to stabilise SAA.

In November, the cash-strapped state airline revealed it will need a total of R7.5 billion to fund day-to-day operations into 2019.

CapeTalk host John Maytham speaks to Alf Lees, the Democratic Alliance’s deputy finance spokesperson, about the deal.

Lees says it’s a fantastic deal: “We’re suspicious, of course, that there are some catches; the big catch being the loan would require a government guarantee to support the loan in the event of SAA not being able to repay. The other is the R21 billion loan may take the form of bank guarantees.”

For more information listen to the audio above.

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