South Africa’s big plan for state-owned companies hits a wall

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South Africa was set to create a new SOE to manage other SOEs, but the proposed legislation missed a crucial deadline.

South Africa’s plan to change how state-owned enterprises operate has hit a snag in Parliament, but this could be an opportunity for improvement.

SAMco will hold ownership interests in thirteen key national government commercial enterprises, which can be subsidiaries, and will essentially replace the Department of State Enterprises.Parliament’s latest term dissolving on 21 May 2024According to the Parliamentary Monitoring Group, a lapsed bill can be revived via a house resolution.

The ANC can thus no longer push through a Bill through Parliament without the help of its former rivals.The lapsing could also be a blessing in disguise amid concerns over the second/latest version of the Bill.fair share of controversy involving SOEs “We recognise that multiple strategies have been devised by the various administrations for SOEs, but there has been a crippling lack of execution or implementation of these. Consequently, we are concerned that this objective may turn into yet another example of failed execution,” said Constantatos.

 

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