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EXCLUSIVE I Gordhan on why capital injection into SAA readies airline for equity sale

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In Gordhan's view there is a place for a South African-based "national carrier".
In Gordhan's view there is a place for a South African-based "national carrier".

The R10.5 billion allocated to South African Airways in this week's medium-term budget is not to relaunch a "new SAA", but is needed in order to make a new airline a value proposition for a strategic equity investor, according to Minister of Public Enterprises Pravin Gordhan.

Speaking to Fin24 after Minister Tito Mboweni delivered his budget on Wednesday, Gordhan said the flag carrier is like an old car which has the potential to be jacked up.

"You have to do what is necessary to make the new entity a value proposition and a meaningful partnership to an equity investor. This will be a straight-forward commercial process," Gordhan told Fin24.

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