The South African Cabinet has announced that it has approved the commencement of another process to identify a suitable strategic equity partner for South African Airways as a "long-term strategic intervention to strengthen the national carrier's balance sheet, improve access to capital and aviation expertise, and support fleet renewal and route development".

The decision was taken at a Cabinet meeting on August 26, 2026, according to a statement issued afterwards.

"Cabinet approved the start of a transparent, competitive, and properly governed process to identify a suitable strategic equity partner (SEP) for SAA SOC Limited," the statement said. "This will enable the airline to expand sustainably and improve its competitiveness in a highly competitive aviation market."

"The decision also aims to reduce the government’s financial exposure and help SAA become a credible, investable and self-sustaining national carrier that supports connectivity, trade, tourism and economic development," it added.

Previous failed SEP process

A previous attempt to find a strategic equity partner for SAA was launched after its 2021 business rescue exit. However, the deal collapsed in March 2024 after nearly four years of negotiations over valuation, governance, and regulatory conditions.

After a year-long process in which Ethiopian Airlines made overtures to SAA, the government in June 2021 announced the Takatso Aviation Consortium as the preferred SEP under a deal that would see the state divest 51% of SAA. The consortium was structured with Johannesburg-based asset management firm Harith General Partners as majority owner, and minority stakes held by Global Aviation Operations (GE, Johannesburg O.R. Tambo) and Syranix.

The Competition Commission granted conditional approval in May 2023, followed by the Competition Tribunal’s final approval in July 2023, subject to conditions including a retrenchment moratorium and changes to Takatso's ownership structure. A key condition was the divestment by Global and Syranix from Takatso because they owned the Lift Airlines brand, a domestic competitor to SAA, raising competition concerns. Global and Syranix publicly disputed they had agreed to exit, prolonging uncertainty around the transaction.

The deal broke down after the government adjusted SAA's asset valuation upwards, which Takatso said altered the economics it had signed up to. By March 2024, the late public enterprises minister, Pravin Gordhan, terminated the SEP transaction with Takatso.

The aftermath

SAA’s former group CEO John Lamola said that the airline would continue searching for a strategic equity partner, potentially including other airlines. By mid‑2025, SAA was described as self‑funding operations and fleet growth, no longer reliant on government guarantees but still open to a strategic equity partner as part of long‑term restructuring.

However, SAA’s 2025 financials drew sharp criticism after the Auditor‑General of South Africa issued a disclaimer of opinion on the group's year‑ending‑March‑2025 results, saying the statements were not a "true reflection" of its financial position.

The audit crisis coincided with a leadership shake-up. Lamola and non‑executive directors departed in April 2026, and an interim management team was installed to "turn over every rock" on waste and inefficiencies.

Yet barely four months after his appointment as acting SAA group CEO, Matshela Seshibe was placed on "special leave" on August 14, 2026, pending the outcome of an internal process, while Koekie Mbeki, SAA’s chief legal officer, was installed in his place.