Members of the Presidential State-Owned Enterprises Council (PSEC) have been appointed.
In a statement, the presidency indicated that the PSEC is designed to support government to reposition state-owned enterprises (SOE) as effective instruments of economic transformation and development.
The PSEC will be chaired by president Ramaphosa and will include relevant ministers.
“The Council’s mandate includes strengthening the framework governing SOEs including the introduction of an overarching Act governing SOEs and the determination of an appropriate Shareholder Ownership Model.”
SOE-specific interventions in the pipeline include stabilizing companies via strengthening governance, addressing immediate liquidity challenges and implementing agreed turnaround strategies.
Business models, capital structure and sources of financing for SOEs will be reviewed and risks will be monitored and mitigated.