Introduction
State-owned enterprises (SOEs) play a critical role in South Africa’s economy as they are responsible for providing the infrastructure and services on which the economy depends including electricity, water, freight logistics, commuter transport and telecommunications.Instead of being at the forefront of economic and social transformation, most SOEs have been associated with state capture, financial mismanagement and major governance failures due to weak accountability and inefficiency. Some of the biggest and most important SOEs have not met their mandates due to underperformance and require regular bailouts from government. In the fiscal year to end February 2021, direct transfers from the government to SOEs amounted to 1. 6% of GDP compared to an average of 1% in the previous five fiscal years. Over the past two decades, government has spent more than R308bn bailing out and recapitalising SOEs.
Outlook
While reform of SOEs has been a major theme of government for many years, there is no evidence of improvement. South Africa’s imminent grey listing may be the catalyst to accelerate reforms to counter corruption and enhance defences against fraud. BNP Paribas said SOEs will keep acting as a drag on growth due to their impact on public finances and the quality of infrastructure.Report Coverage
This report on state-owned companies in South Africa includes information on the SOE sector as a whole and major SOEs such as Eskom, Transnet, SAA, Denel and the Post Office. It includes information on the state of SOEs and their effect on the fiscus and the economy, state capture and corruption, government guarantees and support and regulations. There are profiles of 24 companies including the major SOEs mentioned above and others such as Airports Company South Africa, the Passenger Rail Agency, state-owned funding institutions such as the Industrial Development Corporation and the Land Bank and regulators such as the Financial Sector Conduct Authority.Table of Contents
1. INTRODUCTION4. AFRICA5. INTERNATIONAL8. SWOT ANALYSIS9. OUTLOOK
2. DESCRIPTION OF THE INDUSTRY
3. LOCAL
6. INFLUENCING FACTORS
7. COMPETITIVE ENVIRONMENT
10. REFERENCES
APPENdix
COMPANY PROFILES
Companies Mentioned
- Air Traffic and Navigation Services Company Ltd
- Airports Company South Africa SOC Ltd
- Alexkor SOC Ltd
- Armaments Corporation of South Africa SOC Ltd
- Broadband Infraco SOC Ltd
- Denel Asia LLC
- Denel SOC Ltd
- Development Bank of Southern Africa
- Eskom Holdings SOC Ltd
- Financial Sector Conduct Authority
- Gaborone Container Terminal JV
- Independent Development Trust
- Industrial Development Corporation of South Africa Ltd
- Land and Agricultural Development Bank of South Africa
- National Transmission Company South Africa SOC Ltd
- Openserve (Pty) Ltd
- Passenger Rail Agency of South Africa
- Petroleum Oil and Gas Corporation of South Africa SOC Ltd (The)
- Sasria SOC Ltd
- SEF SOC Ltd
- South African Broadcasting Corporation SOC Ltd
- South African Forestry Company SOC Ltd
- South African Nuclear Energy Corporation SOC Ltd (The)
- South African Weather Service
- Suid-Afrikaanse Poskantoor SOC Ltd
- Telkom SA SOC Ltd
- Trans-Caledon Tunnel Authority
- Transnet SOC Ltd
- V T Tyre Services (Pty) Ltd
Methodology
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