SA pushes Zimbabwe over US$59m SAA debt

South Africa's Department of International Relations and Cooperation was expected to appear before Parliament on Tuesday to account for efforts to recover more than US$50 million owed by Zimbabwe to state-owned airline South African Airways (SAA).

Zimbabwe owes SAA about US$59 million (approximately R1 billion) in unpaid ticket sales from the airline's commercial flights between Johannesburg and Harare, as well as Victoria Falls.

The debt has accumulated since 2020 as Zimbabwe has struggled with persistent foreign-currency shortages and liquidity constraints.

The amount owed by Zimbabwe represents the bulk of SAA's outstanding receivables from foreign governments and entities, with the airline reportedly owed a total of about R1.4 billion by various countries.

The debt has become a longstanding diplomatic and financial issue between the two neighbouring countries.

In 2024, SAA disclosed that Zimbabwe had proposed repaying the outstanding amount at a rate of US$1 million every three months.

At that rate, the debt would have taken more than 16 years to settle, a proposal that was rejected by South African officials as being impractical.

"The remaining $50 million, they indicated a payment plan at an amount of $1 million (R16 million) per quarter. Now that is a very long payment plan, that to date, we have not yet received funds," then-SAA chief financial officer Lindsay Olitzski said in 2024.

Olitzski retired in March this year.

The South African government had previously indicated that it could use diplomatic channels to resolve the matter.

In 2024, then-Transport Minister Barbara Creecy told Parliament that diplomatic interventions would be considered in efforts to recover the funds.

The issue appears to have since reached the highest levels of government.

South African broadcaster Newzroom Afrika reported on Tuesday that President Cyril Ramaphosa and Zimbabwean President Emmerson Mnangagwa had discussed the outstanding SAA debt.

Despite the discussions and previous proposals, no payment has reportedly been made towards the outstanding amount.

"Six or so years later, nothing has been paid," business and finance writer Ntokozo Khumalo was quoted as saying.

The unresolved debt highlights the difficulties faced by regional airlines operating in markets where foreign-currency shortages restrict the repatriation of ticket revenues.

For SAA, recovering the funds is particularly important as the airline continues efforts to strengthen its balance sheet and expand its regional and international operations.