In a significant move, Pravin Gordhan, South Africa’s Minister of Public Enterprises, is set to introduce a groundbreaking bill in parliament. The proposed legislation aims to establish a government-owned entity, the State Asset Management SOC Ltd., tasked with overseeing and managing a portfolio comprising at least 13 key state-owned enterprises.
Outlined in an explanatory note dated January 9, as published in the Government Gazette, the National State Enterprises Bill lays the groundwork for the creation of the State Asset Management SOC Ltd.
The bill outlines a phased transfer mechanism for the incorporation of various state enterprises into this central holding company.
The primary objectives of the bill are centered on enhancing the operational efficiency of national commercial state-owned enterprises, aligning them with the government’s developmental goals.
Additionally, it seeks to establish robust governance structures for the State Asset Management SOC Ltd. and its subsidiaries, fostering their commercial sustainability.
The entities slated for potential transfer to the new State Asset Management SOC Ltd. include:
- Air Traffic and Navigation Services Co. Ltd
- Airports Co. Ltd.
- Broadband Infraco SOC Ltd.
- CEF (Pty) Ltd.
- Denel
- Eskom
- Sentech SOC Ltd.
- South African Airways SOC Ltd.
- South African Forestry Co. SOC Ltd.
- South African National Road Agency Ltd.
- South African Nuclear Energy Corp. Ltd.
- South African Post Office SOC Ltd.
- Transnet
The proposed State Asset Management Company is envisioned as a holding entity that will exercise control and ownership over its subsidiaries, operating in accordance with the South African Companies Act and relevant legislation.
As per the bill’s provisions, the President will play a pivotal role in developing a comprehensive “national strategy.”
Collaborating with the presidential advisory committee and consulting with the newly established state-owned holding company and relevant ministers, this strategy will delineate the performance expectations, objectives, and developmental obligations of the holding company and its subsidiaries.
Crucially, the strategy is slated for a periodic review every five years. This ambitious initiative reflects the government’s proactive approach towards optimizing the performance and strategic alignment of its state-owned enterprises.
