South Africa’s Scandal-Hit State Firms Put Economy on ‘Cliff’s Edge’

Growing problems at South Africa’s state-owned enterprises are pushing major companies toward bankruptcy and subjecting the continent’s most developed economy to rolling blackouts that are choking growth, The Wall Street Journal reported. Earlier in December, flagship carrier South African Airways narrowly avoided collapse after the government loaned it 2 billion South African rand ($137 million) and ordered a restructuring. The cash injection came as South Africans watch eye-popping testimony from a national commission where witnesses allege corruption at the airline and other state-owned companies under former President Jacob Zuma. The airline’s plight reflects the broader malaise of the country’s mismanaged and heavily indebted state-owned companies that new President Cyril Ramaphosa has pledged to fix. Read more