Ramaphosa: State-owned entities are critical and won't be privatised

Ramaphosa: State-owned entities are critical and won't be privatised

- Cyril Ramaphosa has said once again that SOEs will not be privatised

- He made the comments in Parliament this week

- The president also argued that many government institutions are actually well-run

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Cyril Ramaphosa says he has no intention of privatising any state-owned enterprises.

The president made the remark while replying to the debate around his State of the Nation Address during a joint sitting of the National Assembly on Tuesday.

However, Ramaphosa said once again that government was committed to assisting SOEs, many of which are under severe financial strain.

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The president also said that state-owned enterprises play a crucial role in the country. He also made the case that government-run entities can be efficient and effective, according to Eyewitness News.

As an example, he cited the Post Office's handling of the distribution of Sassa grants. Ramaphosa said that, as of this year, almost 8 million citizens received their grants through the Post Office. Last year, that number was around 30 000.

He also said that government enterprises worked every day to mend roads, supply water and remove refuse, among many other services, Briefly.co.za has gathered.

However, the fact remains that not all SOEs are well-run. SAA has run at a loss for years, while Eskom faces enormous debt and is struggling to meet energy demand. 

The president assured Parliament that his administration was committed to addressing these issues as well. For example, he is going to table a bill to allocate over R200 billion to help Eskom.

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While the power utility desperately needs the funds, the plan has spooked some investors, who worry about increasing government debt.

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Source: Briefly.co.za

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