The financial and operational emergencies at Eskom and SAA grab headlines. But they are not unique.
National state-owned enterprises as a group have reported losses over the past two years. Analysis of the 21 national SOEs points above all to the effect of the economic slowdown, combined with weak oversight systems. A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.
It is not just an issue of the business model. It also an issue of the public not seeing the need to diversify away from eskom as much as possible, by introducing solar geysers for example in their households.
Because government is implementing its looting model, its in the nameSOE, governments other bank account. Same model
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Companies opt for onshoring amid global risks and regulationsBefore looking at the practicalities of onshoring, however, it’s worth digging a little deeper into what’s driving the phenomenon.
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