SAA deal a step in right direction

Following close to two years of uncertainty and continuous bailouts, government no longer owns the majority share of South African Airways (SAA).

Takatso Consortium – comprising Global Airways, owners of newly launched domestic airline Lift, and Harith General Partners, owners of Lanseria International Airport – will take a 51% shareholding of the embattled national carrier.

ALSO READ: Mango has ‘no idea what the hell is going on’ after SAA 2.0 deal announced 

Government will retain a 49% stake. According to the new strategic equity partner, it will invest R3.5 billion over the next three years.

Government, however, will retain special voting rights to ensure the airline remains in the country.

Best yet, Public Enterprises Minister Pravin Gordhan said “as far as the new airline is concerned, government will not be putting in more money”.

This announcement and President Cyril Ramaphosa’s decision to let independent power producers enter the market suggests government has finally started to realise it needs help in running state-owned enterprises (SOEs).

This is a start, let’s hope other SOEs follow. The very future of our economy depends on it.