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Cape Town - Public Enterprises Minister Malusi Gigaba said on Tuesday there is huge appetite among potential foreign investors to fund logistics group Transnet's capital projects.
This week Gigaba was in London as part of a "no deal roadshow" for overseas asset fund managers, aimed at drumming up support for Transnet without asking them for cash.
Gigigaba told the investors of Transnet's R110bn five-year capital investment programme, of which it only needed to raise one-third or R33bn as a large chunk of the funding would come from its balance sheet.
"What the roadshow in Europe and especially the United Kingdom has shown is that there is a huge appetite for Transnet. It is a measure of confidence in the company and the fact that it is delivering its mandate efficiently," Gigaba said after meetings with fund managers.
JP Morgan and Standard Bank assisted Transnet in hosting the roadshow, designed to provide feedback to investors on the company's programmes.
"Investors were very positive on Transnet's performance and outlook," said Kennedy Bungane, CEO for corporate and investment banking at Standard Bank.
Transnet CEO Brian Molefe, chairperson Mafika Mkwanazi, acting chief financial officer Anoj Singh and group treasurer Disebo Moephuli participated in the roadshow.
Gigaba, whose ministry has oversight over Transnet and power utility Eskom, was pleased that state-owned enterprises had returned a healthy balance sheet this year.
He singled out Transnet and arms firm Denel for praise.
"South Africa is catching up with a backlog in investment on infrastructure, occasioned by reduced investment between 1976 and 2004. Transnet has plans to modernise and upgrade the ports, expand the rail networks and acquire locomotives and wagons," Gigaba said.
Gigaba also expressed his desire for opening up freight links from Durban to the Zambian copper belt city of Chingola.
"It is South Africa's vision and desire to also help the southern African region integrate its freight network and ports in order to promote economic growth," said Gigaba.
This week Gigaba was in London as part of a "no deal roadshow" for overseas asset fund managers, aimed at drumming up support for Transnet without asking them for cash.
Gigigaba told the investors of Transnet's R110bn five-year capital investment programme, of which it only needed to raise one-third or R33bn as a large chunk of the funding would come from its balance sheet.
"What the roadshow in Europe and especially the United Kingdom has shown is that there is a huge appetite for Transnet. It is a measure of confidence in the company and the fact that it is delivering its mandate efficiently," Gigaba said after meetings with fund managers.
JP Morgan and Standard Bank assisted Transnet in hosting the roadshow, designed to provide feedback to investors on the company's programmes.
"Investors were very positive on Transnet's performance and outlook," said Kennedy Bungane, CEO for corporate and investment banking at Standard Bank.
Transnet CEO Brian Molefe, chairperson Mafika Mkwanazi, acting chief financial officer Anoj Singh and group treasurer Disebo Moephuli participated in the roadshow.
Gigaba, whose ministry has oversight over Transnet and power utility Eskom, was pleased that state-owned enterprises had returned a healthy balance sheet this year.
He singled out Transnet and arms firm Denel for praise.
"South Africa is catching up with a backlog in investment on infrastructure, occasioned by reduced investment between 1976 and 2004. Transnet has plans to modernise and upgrade the ports, expand the rail networks and acquire locomotives and wagons," Gigaba said.
Gigaba also expressed his desire for opening up freight links from Durban to the Zambian copper belt city of Chingola.
"It is South Africa's vision and desire to also help the southern African region integrate its freight network and ports in order to promote economic growth," said Gigaba.
