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News around Africa - November 25, 2020

South African Airways Plans to Sell Shares to Pension Funds, Individual Investors

South Africa’s Finance Minister, Tito Mboweni, on Tuesday disclosed an elaborate and ambitious plan to revive South African Airways, the country’s struggling national carrier.

The revival strategy entails plans by the South African Government to offer stakes to individual investors, pension funds, and an “operational partner”. The various subsidiaries of the South African Airways group (i.e., SSA Technical and Mango) would also be brought under one umbrella company as part of the revival strategy.

“The government has made a decision to support a restructured airline, not the existing one. The new airline would be partly owned by the government and more broadly by private-sector investors and we should move with speed,” Mboweni disclosed during an interview at a virtual Bloomberg Capital Markets event.

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Business Elites Africa understands that a number of private investors have expressed interest in South African Airways. One of them is Ethiopian Airlines Group. And as the South African Finance Minister noted, talks are progressing well. However, none of these companies have yet to provide the much-needed capital towards the revival effort.

In the meantime, aircrafts belonging to South African Airways have been parked and idle for months now as the Government struggles to find the cash to effect the revival plan.

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