Finance Minister Nhlanhla Nene has revealed that several state-owned enterprises (SOEs) are struggling financially and will rely on government assistance for the remainder of the year. SOEs including SA Express, Denel, and the Post Office will need more money from the Treasury.
While these guarantees help the SOEs, they are seriously risky for state coffers who would hurt financially if the SOEs default. As of March, the government had already guaranteed a sum of R462 billion to these SOEs. The enterprises have revealed that they will need significantly more funds to continue operating through the year.