R521 Billion Used To Bail Out Struggling State-Owned Enterprises

• Finance Minister Enoch Godongwana previously revealed that the government spent R521 billion in 15 years to bail state-owned enterprises out
• These include SOEs like Transnet, Eskom, South African Airways and the Post Office, all of which received billions in bailouts over the years
• South Africans debated the revelation, with some defending state-owned enterprises and others expressing anger at the amount spent bailing SOEs out

Tebogo Mokwena, Briefly News's current affairs journalist, covered current affairs relating to international conflict, the economy, finance, banks, and state-owned enterprises during his seven years at Daily Sun and Vutivi Business News.

JOHANNESBURG— Finance Minister Enoch Godongwana revealed in February 2025 that the government spent over R500 billion bailing struggling state-owned enterprises (SOEs) out.

How much did gov spend bailing SOES out?

According to BusinessTech, the Minister of Finance revealed during a talk at the launch of the World Bank report titled "Driving Inclusive Growth in South Africa" that the government spent R521 billion on SOEs that have been bailed out. He said SOES requested treasury bailouts of over R500 billion over the past ten years. He added that this money was made available without raising taxes.

Which SOEs received the most bailouts?

Eskom received the most bailouts at R496 billion since 2008. South African Airways received 12.4% of the bailouts, totalling R49 billion in a space of six years. The South African National Roads Agency (SANRAL) received R47 billion. Transnet, on the other hand, requested a bailout of R61 billion last year, which Cabinet did not approve. The South African Post Office received R10.4 billion and Denel received R8.95 billion.

What you need to know about SOEs

• In 2021, Denel reported to Parliament that it owed its employees R636 million in unpaid salaries and would not be able to meet its financial obligations
• South African Airways relaunched in October 2023 despite facing financial difficulties, and introduced new routes
• The South African Post Office said in November of the same year that it needed R3.8 billion after business rescuers revealed that it was not making a profit
• Transnet lost R7 billion in the 2024 financial year, an increase from the R5.1 billion it lost in the previous year

South Africans debate

Netizens commenting on @BusinessTech's X tweet debated the findings.

Those who agree

Saffa said:

"I think you meant you say: "The ANC has looted R521 billion without consequence while raising VAT so that next year they can steal even more."

Paul Wiggins said:

"You can expect an SOE to make a small loss and even the odd big one, but this is off the charts. Where did the money come from? This upsets people. It is wasteful."

Nic Ross said:

"Bailing out means replacing funds that went missing into the hands of ANC officials."

Magnesium said:

"No worries for the ANC. We have an endless stream of money for them to steal. Taxes never go away."

Those who disagree

Kulani Maks Mashele said:

"Taxpayers also bailout private companies. We are yet to see a comparison between the two from one of the media houses."

Eight-handled Sword Divergent Sila Divine General said:

"Bailing out SOEs who provide public goods that benefit all of us is not a loss."

Dee said:

"These companies are extremely important to South Africa. They should be listed and have no majority shareholder."

Motlodi asked:

"And how much went to bailing out private companies over the last 10 years?"

Government to implement holding company for SOEs

In a related article, Briefly News reported that President Cyril Ramaphosa announced that the government would establish a holding company for SOEs.

He said SOEs that previously reported to the Department of Public Enterprises will report to the company once they are established.

Source: Briefly News