South Africa has approved 94.8 billion rand ($5.3 billion) in fresh government guarantees for Transnet, the troubled state-owned rail and port operator, in an effort to restore operational capacity and stabilise its deteriorating finances.

The support package, announced by the Department of Transport, includes 48.6 billion rand to cover debt repayments over the next five years and 46.2 billion rand to shield the company from further credit-rating downgrades. It follows an earlier 51 billion rand guarantee granted in May.

Once a strategic pillar of South Africa’s logistics infrastructure, Transnet has struggled with a sharp decline in performance, attributed to years of underinvestment, aging assets, and the lingering effects of corruption during the state capture era. Rail freight volumes have fallen to their lowest levels in decades, and the country’s major ports rank among the least efficient globally.

The government said the guarantees are part of a broader financial restructuring plan to steer Transnet toward profitability. The company had applied for funding through a budget facility designed to support large-scale infrastructure investments aimed at reviving economic growth.

Transnet intends to use the additional backing to finance equipment upgrades, expand capacity, and address systemic bottlenecks.