Friday, 30 August 2019 16:25

 

Denel has been granted R1.8 billion bailout from National Treasury and the additional R1 billion bailout will be considered in 2020/21 budget.

The state-run arms firm had asked the government for a R2.8 billion cash injection to help it emerge from a financial crisis and secure lucrative export deals.

In a statement released,Denel saidit was grateful for the unwavering support that it has received from government and treasury.

Under current President Cyril Ramaphosa, public finances are stretched by the need to rescue other ailing state firms such as loss-making power company Eskom and South African Airways, which have both already received cash injections.

Denel produces military equipment from ammunition and armoured vehicles to missiles and attack helicopters for the South African armed forces and for export.