South Africa struggles to recover billions owed by foreign governments

Dr Mmusi Maimane says some debts owed to South Africa are old and have accumulated over time.
Dr Mmusi Maimane has raised concerns over DIRCO’s inability to recover foreign government debts.

South Africa struggles to recover billions owed by foreign governments

Dr Mmusi Maimane says some debts owed to South Africa are old and have accumulated over time.
Dr Mmusi Maimane has raised concerns over DIRCO’s inability to recover foreign government debts.

The Department of International Relations and Cooperation cannot recover funds owed to South Africa by other countries, Parliament’s Standing Committee on Appropriations has revealed.

The committee made the finding after extensive talks with DIRCO, which receives R7.2 billion in public funds but refused to disclose how much each country owes South Africa.

The department cited sensitivity and confidentiality as reasons for not revealing the debt figures during a recent briefing. Committee members expressed concern over the secrecy, arguing that taxpayers have a right to know which countries owe money and what efforts have been made to recover it.

Old debts continue to pile up

Committee chairperson Dr Mmusi Maimane said some of the debts are old and have grown over time. This shows that diplomatic channels have failed, despite different DIRCO ministers handling the matter over the years.

“We cannot be naive; we are operating in a volatile and often unpredictable geopolitical climate. Tensions are escalating in various regions, and global realignment is taking place,” Dr Maimane said.

DIRCO told the committee it uses its budget to support a global network of missions across 103 countries in Africa, Europe, Asia, the Middle East, the Americas and the Caribbean. The department said these missions help strengthen South Africa’s sovereignty and global positioning amid growing geopolitical and economic tensions.

Zimbabwe owes SAA R1 billion

The committee expressed particular frustration over Zimbabwe’s debt to South African Airways. The neighbouring country owes SAA around R1 billion in ticket-sales revenue from flights operating to and from Zimbabwe.

Maimane said the committee decided to engage DIRCO because the matter has dragged on for too long without resolution.

“South African Airways is not operating profitably and is incapable of meeting some of its obligations, yet it is owed much-needed revenue by a neighbouring country. We should be discussing the fact that DIRCO facilitated commitments for this money to be repaid. Sadly, this has not happened,” he said.

Committee demands action

The committee urged DIRCO to create mechanisms for dealing with countries that refuse to repay their debts to South Africa. It warned that maintaining diplomatic relations should not come at the expense of recovering money owed.

“We will continue to pursue this matter, with DIRCO assisting the Department of Transport in recovering unpaid revenue for SAA. SAA cannot be denied funds owed to it for the sake of diplomatic relations while it is in financial difficulty,” Maimane said.

The committee acknowledged DIRCO’s work in promoting South Africa’s interests and image abroad. It will engage further with DIRCO and the National Treasury on the debt issue in due course.

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