Gigaba switches on policy for SAA
The finance mininster’s about-turn comes as the state seeks private sector shareholder for airline
South African Airways (SAA) is to seek a private-sector strategic equity partner, Finance Minister Malusi Gigaba has announced in his capacity as the shareholder representative of the state-owned carrier. The announcement is the second acute policy change in as many days, following Water and Sanitation Minister Nomvula Mokonyane’s announcement that the government would be seeking infrastructure partners in water services. The government’s long-held policy was that the state would remain the sole shareholder in SAA. The idea of a partial privatisation was put on the table by former finance minister Pravin Gordhan in 2016. SAA has had a strategic 20% equity partner until the state-owned corporation Transnet took up its rights and bought back the share in 2002 for R382,5m from the cash-strapped SAirGroup (Swissair). Swissair had bought the share, including an option for a further 10%, in 1999 for R1,38bn. In his mid-term budget statement in October, Gigaba said the state would bail out...
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