Report of proceedings Envisaging a New Path for State-Owned Enterprises

The document records a dialogue on the crisis facing South African State-Owned Enterprises (SOEs), focusing on the need for clear mandates, financial sustainability, and the removal of political interference. Panelists and officials highlighted systemic failures in entities like Eskom, PRASA, and SAA, attributing their decline to state capture, corruption, and poor governance. Proposed solutions include rationalizing the number of SOEs, implementing forensic audits, adopting 'just transition' plans for energy, and strengthening the role of civil society in institutional oversight.

• South Africa has approximately 715 SOEs, including provincial entities, which are categorized by their primary functions: providing services (e.g., Eskom, Prasa, SAA), providing goods (e.g., Denel, SABC), providing development finance (e.g., PIC, Land Bank), or promoting investment at the provincial level.
• Many SOEs are financially unsustainable and pose systemic risks to the national economy; for example, Eskom's debt is R500 billion against a total government debt of R2.5 trillion.
• The decline of SOEs is attributed to 'state capture', corruption, and political interference in operational matters, which has led to the 'hollowing out' of institutions and the appointment of individuals based on political favors rather than merit.
• The energy crisis, specifically Eskom's inability to maintain a consistent supply above 25 gigawatts (against an economic need of 29 gigawatts), is severely impacting the mining sector, leading to idle smelters and reduced production.
• PRASA is described as a 'broken organisation' and 'for all intents and purposes, dead', suffering from a lack of coordination in procurement and an inability to maintain infrastructure.
• There is a call for a 'just transition' in the energy sector to move workers from coal to solar power, ensuring that rural areas are not abandoned and that workers receive necessary skills for the shift.
• Proposed reforms for SOEs include establishing an SOE Coordinating Council, conducting forensic audits of contracts, implementing lifestyle audits for managers, and rationalizing the number of entities based on whether they provide unique services or are essential for national security.

APA

Public Affairs Research Institute (2020). Report of proceedings Envisaging a New Path for State-Owned Enterprises. https://pari.org.za/wp-content/uploads/2020/06/ACP_20200609_FinalSDG-PARI-dialogue-report-on-SOEs_template_v1.0.pdf

Chicago

Public Affairs Research Institute. Report of proceedings Envisaging a New Path for State-Owned Enterprises. 2020. https://pari.org.za/wp-content/uploads/2020/06/ACP_20200609_FinalSDG-PARI-dialogue-report-on-SOEs_template_v1.0.pdf.

Wikipedia

{{cite report |author=Public Affairs Research Institute |title=Report of proceedings Envisaging a New Path for State-Owned Enterprises |date=14 March 2020 |url=https://pari.org.za/wp-content/uploads/2020/06/ACP_20200609_FinalSDG-PARI-dialogue-report-on-SOEs_template_v1.0.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{publicaffairsresearchinstitute2020report, author = {{Public Affairs Research Institute}}, title = {{Report of proceedings Envisaging a New Path for State-Owned Enterprises}}, institution = {Public Affairs Research Institute}, year = {2020}, month = mar, url = {https://pari.org.za/wp-content/uploads/2020/06/ACP_20200609_FinalSDG-PARI-dialogue-report-on-SOEs_template_v1.0.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }