SAA owed R1bn by Zimbabwe and Angola
● SAA is struggling to recover $80-million (about R1-billion) owed by Angola and Zimbabwe.
The embattled carrier is seeking “highlevel government intervention” to get Harare to pay up, an SAA insider said. Angola has made “a bit of progress” in paying off its debt.
The total debt figure — the proceeds of ticket sales that have not been repatriated — was given by SAA spokesman Tlali Tlali.
The airline has grown increasingly frustrated with Zimbabwe, and insiders told the Sunday Times this week it planned to use diplomatic pressure.
Zimbabwe has struggled with a shortage of foreign currency for years. The Reserve Bank of Zimbabwe has a priority list according to which it apportions, weekly, available foreign currency for power imports from Eskom, fuel imports and other expenses.
But SAA, which is in dire financial straits, is in need of short-term working capital.
SAA CEO Vuyani Jarana said this week the situation with Zimbabwe was more dire than with Angola and that SAA would “like to get the cash, given our current context”.
Trickle of money from Angola
“There’s been a bit of funds trickling through [from Angola],” Jarana said.
“The situation with Angola is not as dire as it was about amonth or so ago. Where we sit with a bit of difficulty is with regards to Zimbabwe. Zimbabwe is becoming a challenge to us now more than Angola was because there’s difficulty in terms of hard currency there [in Zimbabwe].”
SAA declined to say how much was owed each by Zimbabwe and Angola.
SAA has repeatedly asked for a bailout to remain afloat until October. It has said it will need about R21.7-billion to remain a going concern for the next three years.
The National Treasury would not comment this week on the debt owed by Zimbabwe, but said: “Funding of SAA’s turnaround strategy requires an acceptable mixture of debt and equity and this matter is being finalised as part of the work of the oversight forum between SAA and National Treasury.”
An SAA insider said Luanda had a payment plan, but nothing was coming out of Harare. “On Zimbabwe, it’s a delicate diplomatic matter that requires a high-level government intervention, and we have had to escalate to Treasury,” the source said.
“[The Treasury] would have to contact the Department of International Relations and Co-operation to assist or get South Africa’s ambassador [Mphakama Mbete] in Zimbabwe. We can’t demand a payment plan because of the fragile relations. Our actions are now about maintenance of relations between the two countries, and life beyond.”
It is understood that the total debt reached about $100-million before Angola made payments of close to $20-million. Angola’s economic situation has improved in recent months, thanks largely to a reform agenda pursued by President João Lourenço and improved global oil prices.
Ndivhuwo Mabaya, spokesman for the Department of International Relations, said on Friday he was not aware that SAA had approached the department for assistance. “The minister of Treasury in South Africa and the minister of Treasury in Zimbabwe do talk to each other. There might be a whole lot of things that we are not aware of,” he said.
Jarana said the airline might also approach the International Air Travel Association for assistance. “We are talking to Zimbabwe and Iata,” he said.
SAA flies to three destinations in Zimbabwe — Harare, Bulawayo and Victoria Falls. The Harare-Johannesburg route is SAA’s most lucrative in the SADC region and the airline is estimated to have carried nearly 370 000 travellers on it last year.