PRETORIA, Gauteng — The Department of International Relations and Cooperation (DIRCO) is set to brief Parliament on ongoing efforts to recover approximately R1.4 billion owed to South Africa by foreign nations, with the spotlight firmly fixed on the unresolved R1 billion debt that Zimbabwe owes to South African Airways (SAA). This prolonged financial dispute underscores the complex foreign exchange and liquidity challenges that continue to hinder cross-border revenue recovery across the region.
The outstanding R1 billion owed to the national carrier stems from ticket sales generated over the past decade. Due to severe foreign exchange and liquidity constraints within Zimbabwe, SAA has been unable to repatriate these funds.
Around 2020, a diplomatic approach was initiated to resolve the impasse. Following briefings with the parliamentary standing committee on public accounts, a repayment plan was established wherein Zimbabwe agreed to pay $1 million USD (approximately R16 million at the time) every quarter. However, SAA leadership viewed this as an unviable, long-term trajectory. Consequently, the airline fully impaired the debt on its books, indicating it saw no realistic likelihood of recouping the funds.
Six years later, no repayments have been made. In a complicated twist, Zimbabwean authorities subsequently claimed that SAA owed them money. The Zimbabwean Department of Environment, Forestry, Water and Climate asserted that the airline owed approximately $2.4 million USD (around R38 million) in climate-related fees.
SAA proposed offsetting this amount against the massive R1 billion debt already owed to them. However, Zimbabwean courts ruled that SAA was obligated to pay the climate fees. The airline ultimately paid half of the demanded amount and instructed authorities to deduct the remaining balance from the larger debt Zimbabwe owes them.
Addressing the operational impact of this financial maneuvering, the former Chief Executive Officer of South African Airways described the court-mandated payment as highly disruptive to the airline’s operations, particularly concerning flights to Zimbabwe and other static regional destinations. The former CEO warned of a trickle-down effect, noting that such financial burdens inevitably result in increased costs for passengers, at a time when the airline critically needs any available capital.
Beyond the SAA dispute, the broader R1.4 billion foreign debt owed to South Africa includes approximately R300 million in outstanding repatriation costs. Questions remain regarding who will ultimately bear this bill and whether it will ever be settled.
Recent high-level diplomatic engagements have yet to yield breakthroughs on this specific financial front. During a recent biannual commission between the presidents of South Africa and Zimbabwe, six new agreements were signed, covering areas such as correctional services and gender equality. However, officials noted that debt governance and the resolution of outstanding financial disputes were conspicuously absent from the agenda, including at the associated business forum.
As DIRCO prepares to present its recovery strategy to Parliament, industry observers warn that without decisive bilateral intervention, outstanding repatriation costs and similar cross-border debts could face a decade-long delay in recovery—if they are recovered at all.
