South Africa: Logistics firm Transnet too risky for private investors

In depth
This article is part of the dossier: South Africa looks for growth

By Xolisa Phillip, in Johannesburg
Posted on Thursday, 5 January 2023 11:41

A Transnet Freight Rail train is seen next to tons of coal mined from the nearby Khanye Colliery mine, at the Bronkhorstspruit station, in Bronkhorstspruit, around 90 kilometres north-east of Johannesburg, South Africa, April 26, 2022. REUTERS

The African Rail Industry Association (ARIA) has accused Transnet of running a “deeply flawed” third-party access process, urging the government to reconsider such a step by the state-owned logistics company.

Third-party access to South Africa’s freight rail infrastructure is part of Operation Vulindlela, a flagship programme of economic reforms designed to unlock private sector investment.

Also in this in Depth:

South Africa: 10 things on Ramaphosa’s economic team to-do list for 2023

After South Africa’s President Cyril Ramaphosa secured the top spot in his party in December, attention has now turned to decisions his government is expected to make in 2023, the fourth year of his five-year stint.

South Africa: Despite big win, tricky deputy casts shadow on Ramaphosa

President Cyril Ramaphosa and his camp won a decisive majority when South Africa’s ANC ruling party re-elected him in as leader in December. However, a tricky deputy poses both danger to his final term in power, observers say.

Standard Bank plans corporate and investment bank expansion in Senegal, Côte d’Ivoire

Standard Bank plans to establish a corporate and investment banking (CIB) presence in Senegal and grow its existing operation in Côte d’Ivoire as part of a plan to scale up in west Africa.

South Africa: Sasol pins future on gas as a transition feedstock

Successful debt reduction and a positive Brent crude oil price outlook have resulted in S&P Global Ratings upgrading Sasol’s credit ratings, but the company’s carbon-intensive value chain weakens its competitive edge.

South Africa: Rainbow’s Phalaborwa pilot can help break China rare-earths dependence

Rainbow Rare Earths is close to starting a pilot project at Phalaborwa in northeast South Africa to provide an alternative to relying on Chinese supplies.

South Africa’s next Eskom CEO ignores coal at their peril – Bayoglu

André De Ruyter failed to fix load shedding at Eskom because he concentrated too much on renewable energy and not enough on coal-fired generation, Vuslat Bayoglu, managing director of mining investment company Menar, tells The Africa Report.

South Africa: Smoother work permit system needed to bridge skills gap

South Africa needs to embrace foreign skills to address the country’s knowledge gap by fixing its visa and work permit system, says Jens Papperitz.