Can you guess which South African state-run entity is profitable? In fact, this state-run entity is not just profitable but hugely so, netting R1.1 billion in the last financial year. And even declaring dividends to investors.
We’re talking about Airports Company South Africa (ACSA), which operates the nation’s largest airports. Two thirds is a state-run entity, with the rest owned by Public Investment Corporation (PIC) and a staff-share incentive.
PROFITABLE STATE-RUN ENTITY
According to its latest financial statements (year ending 31 March 2025), the state-run entity has more than doubled profits from the year before (R472 million). Revenue has grown to R8 billion (13%), while net profit climbed to R1.1 billion, reports BusinessTech.
The state-run entity says disciplined cost management, strengthened internal controls and expanded airport infrastructure contributed to its success. As such, ACSA’s balance sheet is strong, with R32 billion total assets and R3.4 billion liquid assets.
SHARE DIVIDENDS DECLARED
With this in mind, the ACSA Board approved R198 million ‘preference’ and R113 million ‘ordinary’ share dividends for 2024/25. Preference shareholders are paid a predetermined dividend. While ordinary shareholders are compensated with varying amounts each year.
What makes this state-run entity even more unique is it’s the only one not to have received a bailout from government. Between 2020 to 2025, government bailouts surpassed R280 billion. So pervasive is the issue that the World Bank warned South Africa against throwing more good money after bad. It said doing so could ruin our fragile economy irrevocably. Moreover, Transnet has just this week opened up the railways to privatisation.
GOOD MONEY AFTER BAD
Here’s how much the worst state-run companies in South Africa have received in taxpayer bailouts:
- Eskom- R234 billion
- Denel – R9 billion
- SAA – R33 billion
- Transnet – R5.8 billion
SHOULD SOUTH AFRICA DISBAND ALL FAILING STATE COMPANIES?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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