Categories: News

South Africa’s State-Owned Enterprises: A New Era of Growth and Transformation

On August 29, 2023, South Africa’s President Cyril Ramaphosa held a critical meeting with the chairpersons and chief executives of strategic state-owned enterprises (SOEs) at the Union Buildings. The meeting aimed to discuss measures to stabilize the financial and operational performance of SOEs and unlock their full economic potential.

Reforms to Address the Legacy of State Capture

Since 2018, the South African government has been actively involved in a reform process to address the damaging legacy of state capture in SOEs. The strategy includes the appointment of capable leadership, the recovery of stolen assets, and the pursuit of those responsible for acts of corruption. Additionally, through a program called Operation Vulindlela, the government is implementing fundamental reforms in key sectors such as energy, logistics, and water to tackle structural challenges and position SOEs for future success.

Accelerating the Reform Agenda

During the meeting, President Ramaphosa urged management and boards of SOEs to accelerate the reform agenda and fulfill their developmental mandates. He highlighted the critical role of SOEs as strategic national assets, driving inclusive growth, investing in infrastructure, and creating jobs.

Recommendations by Presidential State-Owned Enterprises Council

The Presidential State-Owned Enterprises Council (PSEC), appointed by President Ramaphosa in 2020, presented a report on their efforts to advise the government on revitalizing and repurposing strategic SOEs. The Council has conducted in-depth analyses of 21 SOEs to inform its recommendations. Proposed changes include adjustments to the governance framework and shareholder ownership model, with the aim of enhancing oversight, separating ownership from policy and regulatory functions, and leveraging the combined balance sheet of SOEs.

Review of the Procurement System

Furthermore, the National Treasury provided an update on its review of the procurement system, with the goal of implementing recommendations from the Commission of Inquiry into State Capture. Legislative and regulatory reforms are underway to strike a balance between fostering innovation, agility, and responsiveness in procurement and ensuring transparency and integrity.

Crucial Role of SOEs in Economic Recovery

President Ramaphosa emphasized the crucial role of SOEs in South Africa’s economic recovery. He said, “It is quite clear that the success of our economic recovery relies on the effective functioning of state-owned entities. We are implementing reforms to ensure that SOEs are able to adapt to new economic conditions, including rapid developments in technology, their respective operating environments and changing global trends, and to serve the country well into the future.”

As South Africa faces the challenges of economic growth and transformation in the 21st century, President Ramaphosa’s commitment to prioritizing the turnaround of SOEs signals a promising step towards harnessing their potential for the country’s long-term success. By implementing the much-needed reforms and driving a renewed sense of purpose and responsibility, South Africa’s SOEs can become the catalysts for a new era of progress and prosperity.

Serjio Zakharoff

A Russian-Spanish journalist and Cape Town native, channels his lifelong passion for South Africa into captivating stories for his local blog. With a diverse background and 50 years of rich experiences, Serjio's unique voice resonates with readers seeking to explore Cape Town's vibrant culture. His love for the city shines through in every piece, making Serjio the go-to source for the latest in South African adventures.

Recent Posts

Battling Streetlight Vandalism in Kraaifontein: A Community’s Struggle and Hope

In Kraaifontein, a lively part of Cape Town, the community faces a tough battle against…

23 hours ago

The Good Hope Centre: A Legacy in Transformation

The Good Hope Centre in Cape Town is getting a fresh start! Plans are underway…

3 days ago

Discover the My Cape Town Market: A Celebration of Culture and Commerce

The My Cape Town Market is a lively summer event in the beautiful Company's Garden,…

3 days ago

Boatica Cape Town: A Celebration of Marine Innovation

Boatica Cape Town is Africa's biggest boating show, taking place from October 2527, 2024, at…

3 days ago

Navigating the Crime Landscape: South African Police Service’s Dynamic Approach

The South African Police Service (SAPS) is taking strong steps to fight crime and keep…

3 days ago

Unveiling Alexkor SOC Ltd: A Pillar of South Africa’s Mineral Legacy

Alexkor SOC Ltd is a stateowned company in South Africa that started in 1992, focusing…

3 days ago