11 June 2021

BUSA Media Statement on Announcement by Minister of Public Enterprises Pravin Gordhan That the Cabinet Agreed to Give Up 51% of SAA.

“BUSA notes the statement from Minister Gordhan. BUSA has consistently been of the view that SAA could not survive or become sustainable without a private equity partner, so that the airline is not continually dependent on the fiscus.

We welcome the decision to appoint the Takatso Consortium as the private equity partner for SAA. We also welcome the announcement that the Takatso Consortium will purchase a majority stake in SAA.

We also welcome the announcement that it is the intention to list SAA at an appropriate stage in the future.

BUSA remains steadfast in its position that partnerships between the private sector and government in non-strategic SOE’s is the appropriate way to go. This enables injection of private sector capital and expertise into the operations of such SOE’s. We also remain clear that government must continue to review its SOE’s with a view to rationalization to ensure fewer SOE’s that are efficient and sustainable. The closure of SOE’s that serve no social or economic purpose must also be considered.

We will await further detail on the SAA arrangement and will engage the Minister of Public Enterprises and his department where necessary.”

ENDS

Cas Coovadia
CEO of Business Unity South Africa