Six SOEs face possible financial trouble

Somila Nkosana

04 September 2016

A total of six South Africa’s largest state-owned enterprises are at risk of having to pay more to borrow money after the country’s largest and most influential buyer of their bonds, Futuregrowth, said it would avoid investing in them.

The funder announced it would no longer fund the six, highlighting concern about the independence of their boards from a new council, to be led by President Jacob Zuma.

Futuregrowth said it hoped the industry could form a united position on the SOEs through ASISA - The Association for Savings and Investment South Africa. 

However, Asisa said it could not participate in, or promote, any direction taken by its members.