EDITORIAL: Shuffling SOEs won’t end the shambles
Transferring shareholder responsibility for enterprises to line ministries will only add to dysfunction
Few tears will be shed over the demise of the department of public enterprises. But President Cyril Ramaphosa’s order last week to transfer shareholder responsibility for key state-owned enterprises (SOEs) to their line ministries (https://www.businesslive.co.za/bd/national/2024-08-26-cyril-ramaphosa-moves-public-enterprises-portfolio-to-line-departments/), pending the establishment of a new state-owned holding company, can only add to the shambles around SOEs.
That is not to say it could not have good outcomes, at least temporarily, for the two SOEs that matter most to SA’s economic performance: Transnet and Eskom. Transport minister Barbara Creecy and electricity & energy minister Kgosientsho Ramokgopa are reform-minded, well-regarded ministers. There are high hopes that they will crack the whip and fast-track reforms to create urgently needed competition and efficiency in SA’s energy and logistics sectors...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.