SAA's wings in full flight - and profitable!
This is according to Transport Minister Barbara Creecy, who presented the departmental Budget Vote in Parliament on Wednesday morning.
SAA was racked by allegations of fraud and corruption during the State capture years. It was put under business rescue and grounded but has recovered to fly domestic, continental and international flights.
'With unencumbered assets and renewed profitability, SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade,' Creecy said.
Furthermore, the airline is now contributing to the country's Gross Domestic Product (GDP).
'According to [an Oxford Economics Africa] study, SAA contributed R9.1 billion to South Africa's GDP in 2023/24, a figure projected to more than triple to R32.6 billion by 2029/2030. Over the same period, the airline's operations are expected to support 86 700 jobs, up from the current 25 000, demonstrating its growing role as a national employer and economic catalyst.
'The airline has concluded three out of four outstanding audits and reported a profit of R252 million for the 2022/23 financial year for the first time since 2012. Now operating independently and no longer reliant on government guarantees, SAA is self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring,' the Minister highlighted.
Creecy revealed that the Airports Company South Africa (ACSA) has been allocated some R21.7 billion for infrastructure development.
'[This is] in order to meet our target of moving 42 million passengers per year and increasing air freight handling through the ACSA network of airports. This will improve facilities for passenger safety and comfort over the medium-term and build a new freight terminal at OR Tambo International Airport.
'In addition, we are fast tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of facilities and technologies at each of our airports to improve both security of passengers and cargo, as well as convenience of airport users,' she said.
Creecy told Parliament that the state of roads in South Africa remains an important issue that the department is concerned about, with the South African National Roads Agency (SANRAL) taking over some 3 099 kilometers of provincial roads over the past year.
'Over the period of the MTDP [Medium-Term Development Plan] and beyond, SANRAL has reprioritised within the existing maintenance and capital allocated funding so that these roads are serviced through the Route Road Maintenance Programme,' she said.
Creecy also revealed that the driver's licence printing machine is now back in operation.
'The old card machine is currently fixed and we are hard at work to clear out the printing backlog of licence cards. To ensure we have a backup solution, we have signed a MOU with the Government Printing Works. We expect that within three months, this backup solution will be able to print driver's licence cards,' she said.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
19 hours ago
- IOL News
Tshwane deputy mayor faces allegations over R21 million unpaid municipal bills
The DA's spokesperson on finance in Tshwane, Jacqui Uys, accuses Deputy Mayor Eugene Modise of protecting a property he leases from power disconnection, despite it owing R21 million in municipal bills. Image: Supplied The DA in Tshwane has accused Deputy Mayor Eugene Modise, also the MMC for Finance, of protecting a former Morula Sun property he leases from the North West Housing Corporation (NWHC) from having its power disconnected despite it owing the metro R21.7 million in unpaid bills. Modise is the face of Tshwane Ya Tima revenue-collection campaign, which aggressively targets customers with outstanding municipal bills, often disconnecting their services. In recent months, the city has collected revenues from defaulting customers and businesses by disconnecting them from the grid. DA Tshwane spokesperson on finance, Jacqui Uys, claimed that Mzansi Resorts, formerly Morula Sun, owes the City of Tshwane R21,7m in outstanding rates, taxes, water, and sanitation charges. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'Mzansi Resorts is managed via a lease agreement with the NWHC by Mzansi Exhibitions and Events, a company owned by Tshwane Deputy Executive Mayor Eugene Modise, on the Morula Sun property in Mabopane,' she said. She said that although the municipal account is in the name of the NWHC, the lease agreement with Mzansi Exhibitions and Events specifies that Mzansi and Gold Rush Pty (Ltd), which leases a portion of the property, are liable for the city's bill. Uys said: 'In a recent City of Tshwane Finance oversight meeting, the DA raised concerns on the high outstanding municipal debt of the NWHC. This prompted city officials in the meeting to cite the NWHC's claims that they cannot settle their bills as their lessees do not pay their rent.' The controversy surrounding Modise's company comes after the DA in the North West province last week exposed that Modise owes the NWHC more than R12m in unpaid rent for its property. Modise has outright denied owing the entity, saying he would not allow political gimmicks to damage the relationship between his party and the NWHC. He claimed his administration has revitalised the entity, curbed crime, and halted vandalism. According to him, since the lease agreement, his company has had expensive, crucial renovations and makeovers of the property. Uys said that Modise's unpaid debt to the NWHC is hindering their ability to pay the City of Tshwane, which in turn affects residents, the city's financial recovery, and service delivery. She questioned the disparity in treatment, citing examples of provincial-owned facilities having their electricity cut off for non-payment, while Modise's Mzansi Resorts seems to be exempt. Responding to the allegations, Modise hit out at Uys, saying she is 'struggling with nostalgia'. 'Mzansi does not have an account with the city, and she can take it to court and satisfy her deep hatred for African excellence,' he said. He suggested that Uys needed basic economics training, implying she has lost touch.
IOL News
2 days ago
- IOL News
How Barbara Creecy's R66 billion plan aims to transform South Africa's transport sector
Transport Minister Barbara Creecy announces a sweeping R66 billion investment to modernise South Africa's rail, ports, and aviation sectors, aiming to boost economic growth, create jobs, and improve safety. Image: GCIS Transport Minister Barbara Creecy said South Africa's economic outlook faces significant risks, including domestic constraints and global uncertainties. She noted that state-owned entities operate in a challenging environment, and 'this will require leadership and foresight that prioritise the interests of our country and its people.' Creecy delivered this during her budget vote debate, laying out a broad and ambitious reform programme for logistics, freight, aviation, and passenger transport, to be executed over the next four years. Creecy emphasised that the effective implementation of reforms is vital to boost growth and employment. She highlighted that six clear targets will guide progress. 'The first is to ensure that by 2029, 250 million tonnes of freight are carried on the Transnet network,' she said. Other key goals include improving cargo handling at ports to the international benchmark of 30 gross crane moves per hour, achieving 600 million passenger rail journeys by 2030, and moving 42 million passengers and 1.2 million tonnes of air freight through the ACSA network. On road safety, she said: 'We aim to reduce road fatalities by 40% by 2029, so we reach the UN target of halving road accidents by 2030.' Central to the plan is rail reform, with Creecy confirming that by the end of May 2025, PRASA had successfully revitalised 35 out of 40 corridors and sections of service lines, aiming for an ambitious target of 116 million passenger journeys in the current financial year. Funding and competitive pricing are central to expanding PRASA's offerings, with R66.1 billion allocated over the medium term for infrastructure recovery, signalling upgrades, and new trainsets. On the freight side, Creecy noted that the White Paper on National Rail Policy and the National Freight Logistics Roadmap will guide transformation. 'Strategic infrastructure, such as rail and ports, will remain in public ownership as assets belonging to the South African people,' she stressed. She noted that the private sector participation is being formalised through the PSP framework approved by Cabinet in 2023. Transnet will begin issuing procurement requests in August, supported by a Memorandum of Understanding (MOU) with the Development Bank and National Treasury, she said. This includes the creation of an Interim Rail Economic Regulatory Capacity and open access to the rail network to allow third-party operators, which she said will 'improve network utilisation, increase competition and reduce costs.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Moreover, Creecy said the aviation sector is set to expand with R21.7 billion allocated to airport infrastructure development and freight terminal upgrades. A new panel of aviation experts and licensing council appointments are strengthening governance and oversight. 'Substantial progress is also in evidence with regard to building the AT&S internal training pipeline,' she said. ''Since February 2025, 37 successful recruitments have been made in key areas, ranging from air traffic controllers, investigation and safety specialists, engineering instructors, and programme simulators.'' Creecy also praised the turnaround of South African Airways, stating, 'According to the study, SAA contributed R9.1 billion to South Africa's GDP in the 2023/2024 financial year,' and reported a profit of R252 billion in 2022/2023, its first since 2012. The airline is self-funding operations and exploring a strategic equity partner. Addressing road safety, Creecy said the government aims to reduce road fatalities by 40% by 2029. She confirmed that SANRAL had taken over 3,099 km of provincial roads for upgrade and maintenance. On the driver's licence backlog, she acknowledged delays and said: "It is a matter of public record that we have taken this process on self-review to the courts." The taxi sector will also be targeted for reform, with Creecy stressing the importance of formalisation and self-regulation. 'Existing taxi associations have a fundamental and important role to play in self-regulation and governance,' she said. She said the department is working with the industry to align operator licences with loan repayment terms and reduce vehicle financing costs. Creecy said the Department of Transport is the shareholder representative for 16 SOEs and is developing a standard accountability model to ensure better governance, financial stability, and operational capabilities. 'The entities under the Department of Transport are vital to delivering public value to our citizens,'' she said. Get your news on the go, click here to join the IOL News WhatsApp channel IOL Politics
IOL News
2 days ago
- IOL News
Urgent need for private sector investment in South Africa's transport infrastructure
Transport Minister Barbara Creecy says Transnet will issue Requests for Proposals from the end of August 2025. Image: Ayanda Ndamane / Independent Newspapers Transport Minister Barbara Creecy on Wednesday said the limited availability of state resources to fund infrastructure development made private sector investment critical. Delivering her budget speech in the National Assembly, Creecy said they have just concluded a Request for Information process to guide the private sector investment in five priority rail and port corridors. 'Transnet will issue Requests for Proposals from the end of August 2025, and so begin the formal procurement process,' she said. Creecy also said they have to enhance the involvement of additional operators as a way of extending freight logistics capabilities of the country and region, beyond what the public sector alone would have been able to accomplish. 'It is important to point out that as an economy, we need freight logistics operators that can compete, but that can also complement each other when the need arises, for the benefit of our country and region.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The minister explained that the Cabinet approved a Private Sector Participation (PSP) framework in 2023 to guide private sector involvement across the logistics sector value chain. 'The department has concluded a Memorandum of Agreement with the Development Bank of Southern Africa (DBSA) and the National Treasury, appointing DBSA as the hosting institution for the unit. We have established the Interim Rail Economic Regulatory Capacity to create fairness and transparency for third-party operators, improve network utilisation, increase competition, and reduce costs.' She also said the open access to the rail network will allow train operating companies to increase the volume of goods transported by rail, while the network infrastructure remains state-owned. 'As part of the rail reform programme, we have also created the new Transnet Rail Infrastructure Manager to have a dedicated focus on the management of the rail infrastructure. The Transnet Freight Rail operating company would now focus on the transportation of rail commodities through its rolling stock.' She added that they cannot afford to wait until the PSPs reach financial close before launching an ambitious programme to rehabilitate Transnet's rail network and rolling stock, as well as port infrastructure and equipment. DA MP Thamsanqa Mabena said Transnet must accelerate the process to issue rail concessions on the five priority lines. 'We believe the participation of the private sector will assist with injecting much-needed capital and expertise to provide relief to the constrained fiscus,' Mabena said. Creecy told the MPs that the Passenger Rail Agency of South Africa (Prasa) had, by the end of May 2025, successfully revived 35 out of 40 corridors and sections of service lines. 'We continue to deliver at pace with Prasa achieving an unaudited figure of 77 million passenger journeys for the last financial year and 116 million passenger journeys for the 2025/2026 financial year. Our competitive pricing model for commuter passengers will ensure that working-class communities take advantage of our offerings.' Prasa has been allocated R66.1 billion over the medium term. 'This significant budget is for maintaining, recovering, and renewing rail infrastructure, rebuilding the signaling system, rolling out new train sets to priority corridors, and increasing rail passenger trips.' Creecy also said the Airports Company of South Africa has been allocated R21.7 billion for infrastructure development. 'This will improve facilities for passenger safety and comfort, over the medium term, and build a new freight terminal at OR Tambo International Airport. In addition, we are fast-tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of the facilities and technologies at each of our airports to improve both the security of passengers and cargo, as well as the convenience of airport users.' The minister further said the South African Airways (SAA) was pursuing a bold route expansion strategy to strengthen its regional and global footprint with new regional routes from Johannesburg and Cape Town. She said the airline has begun a measured fleet expansion to meet growing demand. Creecy also said the national carrier was self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring. 'With unencumbered assets and renewed profitability, SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade.'
