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

This report documents a public dialogue held on 14 March 2020, organized by the Strategic Dialogue Group (SDG) and the Public Affairs Research Institute (PARI). The event focused on the commitment made by President Cyril Ramaphosa on 20 January 2020 to reform State-Owned Enterprises (SOEs) in South Africa, specifically regarding their commercial and developmental mandates, operational efficiency, and the reduction of political interference.

• South Africa has approximately 715 SOEs, including provincial entities, which are categorized by their primary functions: providing services (e.g., Eskom, Prasa, SAA, Post Office, SANRAL), providing goods (e.g., Alexkor, Armscor, Denel, SABC), providing development finance (e.g., DBSA, PIC, Land Bank), or promoting investment at the provincial level.
• Many SOEs are financially unsustainable and present systemic risks to the country. Eskom is highlighted as a primary example with a debt of R500 billion against a total government debt of R2.5 trillion, and is described as being 'dysfunctional at an operational level' with an 'insolvent' balance sheet.
• The dialogue identified several systemic crises facing SOEs: a crisis of purpose (why they exist), function (what they do), design (contradictions in legislation and frameworks), legitimacy (why the state is involved), and governance (political interference and lack of merit-based appointments).
• State capture and corruption have severely eroded the fabric of SOEs, leading to 'looting at an industrial scale' and the appointment of individuals based on political favors rather than competence. There is a call for forensic audits, lifestyle audits for new managers, and the prosecution of those responsible to ensure consequences beyond 'golden handshakes'.
• The failure of SOEs has direct negative impacts on the industrial sector. For example, the mining industry suffers when Eskom operates below the required 29 gigawatts of electricity, leading to idle machinery, the potential closure of manganese smelters, and limited investment in mine expansion since 2011.
• Proposed solutions for the 'new path' of SOEs include establishing an SOE Coordinating Council, rationalizing the number of entities based on criteria such as national security or unique service provision, creating equity partnerships, and implementing 'just transition' plans to move workers from the coal sector to renewables like solar panels.

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} }