The World Bank says it is content with the direction government is talking in trying to resolve the crises its State-Owned Enterprises (SOEs) are facing.
The bank says government is having robust engagements and this is a positive sign that they want to resolve problems the SOEs are facing.
The bank has highlighted Eskom which it says should become more efficient and start transitioning to cleaner energy.
Eskom’s current debt is over R500-billion.
Paul Noumba, the bank’s director says,”In the case of most of the SOEs in South Africa, government does not get returns – what government gets is liabilities. Eskom is one of the main and important ones and you remember the concept, too big to fail. An economy and especially one like South Africa cannot afford to have Eskom as failed entity. So what management has to do is to work with management and leadership of Eskom to figure a way forward and a way forward requires different interventions.”
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