The Progress of South African State-Owned Enterprises

The Department of Public Enterprises (DPE) Budget Vote for the 2023/24 financial year, presented in May by Deputy Minister Obed Bapela, highlights the efforts made to improve South African State-Owned Enterprises (SOEs). Despite structural, operational, and strategic challenges facing these entities, Bapela believes that significant progress is being made, thanks to President Ramaphosa’s vision of far-reaching reforms.

External and Internal Factors Affecting SOEs

External and internal factors, such as the COVID-19 pandemic, climate change, and trade disruptions, have affected the running of SOEs. These challenges have made it crucial for the government to implement strategic plans and initiatives to ensure the viability and sustainability of these entities.

Highlights of SOEs’ Improvements

Despite the challenges, key highlights showcase the efforts made to improve these entities, including Denel, Alexkor, and SAFCOL. SAFCOL, the South African Forestry Company, has been implementing a strategy to expand its plantation assets in response to climate change challenges. Alexkor, a diamond mining company, has improved its joint venture diamond operations by over 30% in the past financial year. Denel, a strategic national security and industrial asset, has submitted a realistic business case and strategic objectives as part of its turnaround plan.

Learner Pipeline and Skills Development

Collectively, the SOEs have a learner pipeline of 3,455 trainees in various programs, emphasizing skills development for the economy. The plans and initiatives currently underway aim to make these SOEs more agile, responsive, dynamic, and financially viable.

Importance of Improving SOEs for South Africa’s Economic Growth

The government’s efforts to improve SOEs are vital for South Africa’s economic growth. State-owned enterprises contribute significantly to the country’s GDP and provide essential services to the public. By implementing strategic plans and initiatives, the government can ensure the viability and sustainability of these entities, which will benefit the country as a whole.

The DPE Budget Vote for the 2023/24 financial year presents a path to progress for South Africa’s SOEs. However, challenges still remain, and continuous efforts need to be made to improve the SOEs’ performance and governance. With the DPE’s strategic oversight and tactical guidance, the future of South Africa’s SOEs is looking bright.