Godongwana was blunt in his assessment of the unfolding crisis at state-run logistics provider Transnet, which has seen its financial and operational situation fly right off the tracks.

Read more in Daily Maverick: Transnet operation and financial situation worsens further 

Asked about the possibility of a Transnet injection at a media briefing about the upcoming World Economic Forum (WEF) meetings in Davos, the minister said the jury was still out.

“Transnet, I can’t answer the question yes or no whether we will give it an injection. We are working with Transnet to get an exact understanding of the nature of the problem. If we give them an injection, what must inform that? We have given them a guarantee for this financial year up until the end of March,” said Godongwana, who will lead Team SA’s Davos delegation. 

Transnet’s woes are among the key constraints to economic growth in Africa’s most industrialised economy, along with chronic power shortages, crime, corruption and collapsing municipal services.  

A shortage of locomotives and parts and constant sabotage from copper thieves have crippled the railways, forcing mining companies to curb production. This is while the dysfunction at the ports has created swelling bottlenecks of container ships waiting to offload or load imports and exports.

Godongwana cited state-run Eskom as a prime example of the futility of throwing money at a problem without addressing the problem itself.

“If you look at Eskom, between 2015 and now, we have put into Eskom about R283-billion. And we haven’t seen any efficiencies at all. Moving forward, starting from this financial year to the next two financial years, we are putting another R252-billion into Eskom. Totalling about… half a trillion,” the minister said.

“The problem for me is to avoid the Eskom template of putting money in now and again without making sure there are efficiencies. We spent more time fixing Eskom without fixing power to the grid. Those are two distinct things. Now we must avoid fixing Transnet to the exclusion of fixing the logistics issues. The totality of these issues… will inform whether we do the injection or not.” 

The minister will present his annual Budget speech on 21 February, being extremely mindful of South Africa’s precarious fiscal position and the need to contain rising debt levels in an economy that is barely growing. That makes expenditure plans very arduous.

The government does have other plans in place to address Transnet’s challenges beyond throwing hard-earned taxpayers’ rands at the problem.

This includes logistics plans to allow private sector companies access to railway lines, setting up an independent manager of the rail network, closing down unprofitable lines and giving private operators concessions on ports and rail routes.

Read more in Daily Maverick: Transnet’s turnaround plan: R100bn ‘capital injection’ from government

While Godongwana’s remarks at Thursday’s briefing about Transnet will be welcomed by business and investors as sensible – that he’s not prepared to keep flushing money down the SOE drain – the message Team SA, which includes government and business, is taking to Davos is rather stale.

“The common message we are taking to the annual meeting is that South Africa remains open for business and is committed to creating a conducive environment,” he said in his prepared remarks at a breakfast gathering ahead of the media briefing.

“We remain steadfast in carrying out structural reforms to support and accelerate economic recovery. As government, we remain resolved to deal with the energy and logistics challenges that are adversely impacting our economy.”

This is a song-and-dance routine that South Africa takes to Davos every year. 

But on the structural reform front, the minister at least has signalled that he’s not prepared to spend money on the likes of Transnet without getting something in return. DM