South Africa’s economy can only stabilise if there is stability at the country’s state-owned enterprises (SOEs), according to deputy president Cyril Ramaphosa.
He noted that concerns had been raised in recent months over governance and claims of financial mismanagement at some SOEs with investors and rating agencies displaying discomfort over how they were operating.
Ramaphosa highlighted the need for rigorous oversight at state entities such as Eskom, Transnet and South African Airways.
“The problems at state-owned enterprises require immediate action because they raise a fiscal risk and we in the National Treasury are raising those risks,” added Finance minister Malusi Gigaba. “We are not going to wait until the end of term of this current administration to address these challenges; it’s going to be urgent.”
