A number of state-owned companies have requested billions of rands in funding from the government to help them weather the impact of the coronavirus crisis, National Treasury said in a parliamentary presentation on Tuesday.
Reuters reported that the requested bailout amounts to almost R10 billion, while other state-owned companies have warned of closure if they do not get much-needed funding.
The amounts requested include:
A presentation given by the Department of Public Enterprises at the end of August shows that losses at South Africa’s state-owned enterprises have continued to pile up in 2020, BusinessTech reported.
It is unclear how much funding will be issued to the state firms. South Africa’s economy is forecast to contract at least 7% this year because of the coronavirus crisis and its budget deficit could balloon to as much as 16% of GDP in the current fiscal year.