Gigaba: Govt can't use state resources to bailout SOEs

With South Africa in a recession for the first time since 2009, government has set new goals to reignite economic growth.

FILE: Finance Minister Malusi Gigaba. Picture: EWN.

JOHANNESBURG – As government moves to kick-start the economy, Finance Minister Malusi Gigaba says it can no longer use state resources to bail out poor performing state-owned companies

On Thursday, Gigaba unveiled government’s 14-point plan for the economy.

It’s aimed at reducing government debt, curbing corruption and intervening in struggling parastatals among other interventions.

With South Africa in a recession for the first time since 2009, the government has set new goals to reignite economic growth.

Gigaba says that the plans include selling non-core assets and partial privatisation of state-owned entities.

“Rather than to finance operations and losses and inefficiencies in the SOEs.”

He says a five-year turnaround strategy is being finalised for SAA.

“We must finalise the appointment of the new CEO by July 2017.”

Gigaba says his new plan aims to address investors' continued concerns over rising government debt, SOEs and policy uncertainty.

(Edited by Leeto M Khoza)