Deputy Finance Minister Mondli Gungubele said government is set to partially privatise struggling parastatals.

Gungubele made his statement after Finance Minister Tito Mboweni, during his Medium Term Budget Policy Statement in Parliament on Wednesday, said the configuration of parastatals was on cards with the help of the private sector

Gungubele said, “That is the Cabinet view now that we’ve got what we call for instance a framework for transforming State Owned Enterprises amongst other things is consideration of an equity partner. It means bringing in private sector and private sector participation and even the manner in which you give guarantees, guarantee developmental expenditure not operational expenditure and rationalisation those structures making sure that there’s a fair balance between the commercial imperatives and public accountability.”

Meanwhile, President Cyril Ramaphosa made a commitment to act speedily on Mboweni’s Mid-Term Budget Policy Statement.

Ramaphosa said the state of the economy needs robust and decisive action in order to get out of the current technical recession.

He said government is well positioned to implement the recovery plan which will see the economy strengthening and ultimately jobs being created.

Ramaphosa said, “The performance by Minister Mboweni in his maiden speech and his clearly outlined what we now need to do to rebuild relations that he clearly articulated in a biblical sense. I shall implement the stimulus economy recovery plan moving forward to strengthen our economy and to respond to the technical recession that we are in and we will be able to move forward with greater determination.”