Ramaphosa plans for state company to house SOEs

In an effort to stabilise governance in parastatals, President Cyril Ramaphosa plans to establish a state-owned holding company (SOHC) to house strategic state-owned enterprises (SOEs) and exercise shareholder oversight.

SOHCs are entities established by the state to own/finance new SOEs or to merge existing ones by acquiring their shares, exercising greater control over their financial resources and supporting their managements through operational monitoring.

NOW READ: ‘Too late to save them’: South Africa’s SOEs broken beyond repair

National Assembly

Ramaphosa returned to the National Assembly yesterday in his first question and answer session of the year. The president replied to six questions which touched on matters of national and international importance.

These include South Africa’s tenure as the chair of the Brazil, Russia, India, China and South Africa (Brics) grouping, its fight against crime, plans to build a capable developmental state for the implementation of the Economic Reconstruction and Recovery Plan and aspects regarding the Expropriation Bill.

Inkatha Freedom Party member of parliament Mkhuleko Hlengwa asked Ramaphosa if he intended to dissolve the department of public enterprises and house SOEs in their respective line function departments.

Ramaphosa said SOEs played a crucial role in the provision of public goods and infrastructure to enable economic growth. “This process of reconfiguration takes the overall approach that SOEs that operate in specific sectors of the economy should be placed under the relevant departments.”

ALSO READ: Costs for banks and SOEs could spike if SA is greylisted