President Ramaphosa meets with chairpersons and chief executives of state-owned enterprises
President Cyril Ramaphosa today, 29 August 2023, met with the chairpersons and chief executives of strategic state-owned enterprises (SOEs) at the Union Buildings to discuss the implementation of measures to stabilize their financial and operational performance and harness their economic potential.
Government has, since 2018, embarked on a process of reform to address the legacy of state capture in SOEs, including through the appointment of capable leadership, the recovery of stolen assets and the pursuit of those responsible for perpetrating acts of corruption. In addition, as part of Operation Vulindlela, fundamental reforms are being implemented in the energy, logistics and water sectors to address structural challenges and reposition SOEs for the future.
President Ramaphosa called on the management and boards of SOEs to accelerate this reform agenda and fulfil their developmental mandate. He emphasized the importance of SOEs, as strategic national assets, in driving inclusive growth, investing in infrastructure, and creating jobs.
The meeting received a report from the Presidential State Owned Enterprises Council (PSEC), which was appointed by the President in 2020 to advise government on the revitalisation and repurposing of strategic SOEs.
Since its establishment, the Council has undertaken in-depth analyses at 21 SOEs to inform its recommendations. It has proposed changes to the governance framework and shareholder ownership model to enhance oversight, separate the ownership, policy and regulatory functions of the state, and leverage the combined balance sheet of SOEs.
In addition, the National Treasury provided an update on its review of the procurement system to implement the recommendations of the Commission of Inquiry into State Capture while enabling SOEs to operate in an efficient and competitive manner. Legislative and regulatory reforms are underway to strike an effective balance between preventing corruption and abuse and allowing innovation, agility and responsiveness in procurement.
President Ramaphosa 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.”
President Ramaphosa will continue to prioritise the turnaround of South Africa’s SOEs in order to drive economic growth and transformation.
Media enquiries:
Vincent Magwenya
Spokesperson to the President
E-mail: 082 835 6315
