Ramaphosa to chair virtual inaugural meeting of the Presidential State-Owned Enterprises Council

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President Cyril Ramaphosa will chair the virtual inaugural meeting of the Presidential State-Owned Enterprises Council on Thursday morning.

The meeting will discuss the country’s Economic Reconstruction and Recovery Plan. It will also look at an overview of the different state-owned enterprises and the council’s terms of reference.

A number of state-owned enterprises are unprofitable and have proved to be a burden on the National Treasury with a number of bail-outs. And in June this year, President Ramaphosa appointed the ten-member Presidential State-Owned Enterprises Council to address this and other concerns.

The Council comprised ministers responsible for SOEs and eminent South Africans with proven leadership record and strategic capabilities. They include the Mapungubwe Institute for Strategic Reflection (Mistra) Executive Director Joel Netshitendzhe and Denel Chair Monhla Hlahla among others.

This Council will support government in repositioning state-owned enterprises as effective instruments of economic transformation and development. Again it will review business models, capital structure and sources of financing for SOEs and will monitor and mitigate risks.

Many of the state-owned companies are in huge debt, having suffered years of maladministration and are also accused of offering mediocre services to South Africans.

Ramaphosa has in the past stressed the need to fix the country’s SOEs, including power utility Eskom and South African Airways (SAA).