South Africa’s state-owned airports operator intends to raise about half of the R21.7 billion it plans to spend on an infrastructure program in the next 12 months, its chief finance officer said.
The Airports Co. South Africa will pursue long-term infrastructure debt instruments and loans with favourable terms, Luzuko Mbotya said in an interview on Monday.
The company’s improved financial position has put it on favorable terms with banks and other foreign institutions, who are keen to lend it capital, he said.
Acsa’s profit more than doubled to R1.1 billion in the year through March 2025. “We’ve seen quite a huge appetite towards Acsa,” Mbotya said.
“We really are better poised now to go to the market and fetch the correct price, the most competitive financial instruments, for the R10 billion — which is half of the capex.”
The airports company, which sits on a cash pile of R5.9 billion, is seeking to refurbish its network of airports through 2032.
It plans to fund the other half of the project through capital reserves generated from operations, Mbotya said.
As part of the project, Acsa has completed preparatory work for the construction of a new cargo terminal at OR Tambo International Airport in Johannesburg, which it plans to complete in 2028-29 and expects to spend R5.7 billion.
“We have now started and approved the enablement works,” Acsa chief executive officer Mpumi Mpofu said at the company’s earnings presentation.
For the new financial year, the company has allocated R2.3 billion toward refurbishment and rehabilitation projects, compared with R727 million in the prior period.
Acsa is focusing on modernising its core airport infrastructure, as service breakdowns and operational inefficiencies have hindered the company.
Other key capital projects include an extension to the domestic departure lounge at Cape Town International Airport, improvement of its main runway and renewing the gates and domestic arrivals terminal.
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