Improving Transnet’s performance key to bolstering economic growth – BLSA

Recent statistics have underscored how crucial it is to fix State-owned enterprise (SOE) Transnet, with second-quarter GDP growth of 0.4% still insufficient to achieve the necessary progress in the country, and the rail operator reporting a R7.3-billion loss in the year to end March, compared with the R5.1-billion loss in the previous year, business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso writes in her weekly newsletter. However, she acknowledges that a large part of Transnet’s loss stems from provisions for litigation, which may see the SOE having to refund R9.1-billion to clients for previous overcharging.