The Development Bank of Southern Africa (DBSA) stunned the market with the news that it is to lend SAA R3.5bn. We asked chief investment officer Paul Currie how this squares with the bank’s development mandate.

PC: The rationale for it was you need stability so that the business rescue practitioner (BRP) can complete the business rescue plan. It’s not in the public interest for SAA to collapse in flames. Does SAA need a relook? I’m not an aviation fundi ... but there is clearly a need for a reorganisation and there’s a much greater capacity to retain economic value in an orderly restructuring than a fire-sale collapse. We’re not opining on SAA’s viability or what the media calls a vanity project — it’s purely about stability in the financial sector...

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