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Gauteng forges ahead with plans for state bank and pharma company

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Despite the woes of SOEs like Eskom, the Land Bank, and SAA, the Gauteng government is still pushing ahead with plans to launch a state bank and even a state-owned pharmaceutical company. Moneyweb

Despite the woes of state-owned enterprises like Eskom, the Land Bank, and South African Airways, the Gauteng government is still pushing ahead with plans to launch a state bank and even a state-owned pharmaceutical company. The government leading South Africa’s economic hub believes the two entities will address current market failures that primarily hurt the poor.

” No more SOEs For Business Unity South Africa CEO Cas Coovadia, there is no room in the country’s economy for additional SOEs, and simply put, both the government and the fiscus lack capacity to support the entities. Instead, says Coovadia, it is in both the state and the taxpayer’s best interest to partner with private players already knowledgeable in the sectors to come up with solutions that will address the market failures government refers to.

 

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