Godongwana: Consolidation of SOEs key to ensuring SA's economic growth
The ANC’s NEC said the consolidation of state-owned enterprises was imperative to ensure growth and avoid a possible downgrade by ratings agency.
JOHANNESBURG - With some government officials in Davos, Switzerland, trying to sell South Africa to investors at the World Economic Forum, the African National Congress (ANC) said on Wednesday that the country needed to portray a positive image to attract money.
The governing party’s national executive committee (NEC) said it discussed ways to do this at its recent meeting in Irene, Pretoria. It said the consolidation of state-owned enterprises (SOEs) was imperative to ensure growth and avoid a possible downgrade by ratings agency.
The ANC’s head of economic transformation Enoch Godongwana said: “In so far as the consolidation of state-owned enterprises, there’s a lot of work which has been done to assess which entities do what by National Treasury. What is going to be required now is to review that work and make sure that we can finalise the consolidation process.”
WATCH: ANC briefing on outcomes of NEC meeting
African National Congress (ANC) secretary-general Ace Magashule on Wednesday said that the governing party’s national executive committee (NEC) meeting had agreed that state-owned enterprises (SOEs) needed to be restructured so they were not a burden on the national fiscus.
Magashule said that Eskom and South African Airways were important government entities that were essential to the country’s economy. He did admit that the SOEs were struggling and needed urgent attention to turn them around.
“There should be a proper assessment of the public enterprises’ strategic importance for the developmental agenda. And their mandate must be clear, costed and monitored consistently to ensure successful restructuring programmes,” he said.