South Africa Set to Launch Mega State-Owned Company
- Minister of Public Enterprises in South Africa to introduce the National State Enterprises Bill in Parliament
- The legislation seeks to establish State Asset Management SOC Ltd., overseeing a phased transfer of at least 13 state-owned companies
- The department strives to enhance operational efficiency through the holding company, aligning with the government's developmental goals
Source: Getty Images
South Africa's Minister of Public Enterprises is set to present a bill in parliament, introducing the National State Enterprises Bill. This legislation aims to create the State Asset Management SOC Ltd., overseeing at least 13 state-owned companies through a phased transfer.
Notably, entities like Eskom, Transnet, and Denel, marred by mismanagement and corruption, will fall under this new government firm.
According to BusinessTech, the move seeks to address issues plaguing state-owned enterprises currently under the Department of Public Enterprises.
The department aims to improve the operational efficiency through the holding company, aligning with the government's developmental objectives.
The new SOE will serve as a holding company, exerting control and ownership over all subsidiaries in accordance with the South African Companies Act and relevant legislation. Despite progress, there is still a considerable journey ahead.
As per the bill, the president, in collaboration with the presidential advisory committee and in consultation with the new state-owned holding company and relevant minister(s), must formulate a national strategy.
This strategy will outline the performance expectations, objectives, performance targets, and developmental obligations for both the holding company and its subsidiaries. Additionally, the strategy is subject to a review every five years.
Turmoil hits South Africa's new state-owned bank
Postbank faces a substantial leadership vacuum as board members resign or are dismissed by Minister of Communications and Digital Technologies Mondli Gungubele. In 2023, Postbank encountered technical glitches, disrupting SASSA grant beneficiaries' access to funds via ATMs and retailers.
According to BusinessTech, this issue left over half a million beneficiaries without income, creating ongoing challenges for grant accessibility.
Gwede Mantashe: Zuma's expulsion unnecessary, says ANC national chairperson
In other news, Briefly News reported that ANC National Chairperson Gwede Mantashe asserts that there is no necessity to expel or discipline former President Jacob Zuma, citing his voluntary distancing from the African National Congress (ANC).
The diverse opinions within the ANC regarding Zuma's decision to join and campaign for the new MK Party range from viewing it as a blessing to Mantashe likening the MK Party to a rebel movement.
Source: Briefly News
