Govt to Establish Holding Company for SOEs, Reforms Focused on Economic and Social Impact

Previously managed by the Department of Public Enterprises, SOEs will now report to their respective line departments regarding policy and regulatory matters.

In a recent address to Parliament, President Cyril Ramaphosa outlined the government's plans to establish a holding company for state-owned enterprises (SOEs), a move aimed at enhancing governance and operational efficiency. The Department of Planning, Monitoring and Evaluation has been tasked with finalizing the establishment process.

Previously managed by the Department of Public Enterprises, SOEs will now report to their respective line departments regarding policy and regulatory matters. President Ramaphosa emphasized that the new legislation will ensure the holding company's functions cover governance, financial management, and remuneration standards, aligning with global best practices observed in countries with successful SOE frameworks.

"This initiative is designed to deliver tangible benefits to South African citizens, including more affordable and reliable electricity, cleaner water, efficient public transport, and lower data costs," the President stated.

President Ramaphosa also highlighted the progress of Operation Vulindlela, which has brought about significant reforms in critical sectors such as energy, logistics, telecommunications, visa reform, and water management. These reforms, including improved water quality monitoring, raw water pricing strategies, and the establishment of a Water Partnerships Office, aim to bolster service delivery and ensure sustainable water supply.

Addressing concerns about youth unemployment, the President affirmed that existing programs like the National Rural Youth Service Corps (NARYSEC) and other public employment initiatives are actively engaging young people. The focus is on scaling these programs to broaden their impact within available resources.

On the size of the Executive, President Ramaphosa noted that the complexity of current challenges necessitates strong central coordination. Efforts will be made to optimize state resources, ensure inclusivity, and enhance government efficiency while reducing waste and restructuring state-owned entities. The majority of the budget will continue to support social programs and infrastructure investments.

Looking ahead, President Ramaphosa called for unity and commitment to improving the lives of South Africans, urging all to work together to fulfill the constitutional promise of dignity and equality. He expressed hope that in five years, the country will witness significant progress and inclusivity.

“Let us make a difference and bring our nation closer to the society we aspire to be, ensuring no one is left behind,” the President concluded.