According to BusinessDay South Africa, Transnet, the country’s railway, and ports company is seeking the government’s help in dealing with its R 130 billion debt. Last month, the company’s leadership admitted the company is in a serious debt crisis, paying R 1 billion in debt service every month. The debt crisis emanated from the investment expenditure on 1,064 locomotives in 2014 for R54.5 billion on the assumption that the economy will grow by 5% on annual basis. However, growth in South Africa is 1.8% on average in the last 10 years.
