Top South African businessmen called upon to help save ailing state-owned companies are abandoning their posts, frustrated by indecision and political interference.
A meltdown at some of South Africa’s biggest state companies is intensifying, placing the nation’s finances at risk and frustrating President Cyril Ramaphosa’s efforts to attract new investment and resuscitate a moribund economy.
An exodus of CEOs during the economic downturn is becoming alarming, particularly as there are apparently so few ready replacements.
South African Airways CEO Vuyani Jarana has quit the financially stricken state-owned company, citing a lack of funding and drop in government support for the carrier’s turnaround plan.
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South African Airways will create three distinct business units focusing on domestic flights, pan-African travel and other international routes as the debt-laden airline battles to repair its balance sheet.
The government is facing potentially unpopular decisions needed to fix state companies. So far, it’s shied away from hard choices.
Cash-strapped power utility Eskom should rely on bond markets to raise the funds it needs rather than expecting bailouts from the government, finance minister Tito Mboweni said.
Billions of rand in bailouts will flow to state-owned enterprises, including roads agency Sanral, the Post Office and South African Airways, national treasury said on Wednesday.
South African Airways has appointed Telkom chief investment officer Deon Fredericks as its new interim chief financial officer on secondment from the telecommunications operator.