Budget 2023
Share

State-owned companies big spenders

Cape Town - The major state-owned companies improved their capital spending over the past two financial years, spending 98% of their 2013/14 budgets compared to 80% in 2012/13, a report says.

Expanded infrastructure investments have led to a steady increase in the asset base of state-owned companies, from R517.8bn in 2009/10 to R903.6bn at the end of 2013/14. Over the same period, combined net asset value rose from R176.1bn to R274.7bn and interest-bearing debt levels from R203.4bn to R523bn.

Eskom and Transnet account for 79% of state-owned companies’ net asset value.

Capital expenditure plans will add R78.9bn to the debt of state-owned companies in 2015/16.

Revisions to budgeted borrowing for 2014/15 are due to an additional R21bn borrowed by the Development Bank of Southern Africa and the Industrial Development Corporation to meet their lending targets, and an additional R12.6bn borrowed by Eskom and the SA National Roads Agency Limited (Sanral) to close revenue shortfalls in the current financial year.

While most of the debt will be raised in the domestic market, the proportion of foreign debt is significant, averaging 36% over the medium term.

The major state-owned companies benefiting from government guarantees are Eskom (R350bn, of which R144bn has been used), Sanral (R38bn), the Trans Caledon Tunnel (R25.7bn) and SAA (R14.4bn). A guarantee is a commitment to take responsibility for a loan in the event of default; it enables the beneficiary to access funding that would otherwise be unavailable or to borrow at rates that reflect lower risk premiums.

During 2014/15 the government issued additional guarantees to SAA and South African Express Airways.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.88
+0.1%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.13
+0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders