President Ramaphosa Advances Plan To Create Holding Company For SOEs

The government has assigned the Department of Planning, Monitoring and Evaluation to finalize the process of setting up a holding company for state-owned enterprises (SOEs).

Speaking in the parliament on Wednesday, President Cyril Ramaphosa said that SOEs previously managed by the Department of Public Enterprises would now report to their own line departments for policy and regulation.

He also confirmed that new legislation was introduced to create a holding company to oversee and coordinate key strategic SOEs.

"The legislation will assign the functions of the holding company, which will cover issues of governance, financial management, remuneration standards and similar matters. This is in line with global best practice and is the approach taken by many countries with SOEs that successfully fulfil a social and economic development mandate," the president said, SA News reported.

He added, "While some in this House might be dismissive of the work being coordinated in the Presidency, let us not lose sight of what these measures mean for the everyday lives of South African citizens. They mean more affordable and reliable electricity, cleaner water, efficient trains and lower data costs."

The president also addressed other issues, highlighting that a small team of officials from the Presidency and National Treasury, working with various government departments and entities, had made a positive impact on growth and investment through Operation Vulindlela.

He noted that the reforms, focused on critical areas like energy, logistics, telecommunications, visa processes and water, have been effective. In the water sector, efforts include improving water quality monitoring, creating a pricing strategy for raw water and setting up a Water Partnerships Office to enhance infrastructure.

These changes are expected to lead to better water quality management systems, which will provide cleaner water and a reduced health risk. "The ultimate beneficiary is the people of South Africa, and strengthening and enhancing the economy of our country," he said.

The president said that the ongoing reforms are building a strong foundation for lasting economic and social progress. He acknowledged the calls for programs to involve young unemployed people in work, training, and development.

He clarified that such programs do exist including the National Rural Youth Service Corps (NARYSEC), which helps unemployed rural youth.

Furthermore, the president said the government will ensure to "reduce waste, rationalize and restructure our state-owned entities, and continue to direct the majority of our budget towards sustaining the social wage and investing in infrastructure."

He hoped that in five years, the government would be able to say they made a real difference in people's lives, moved the country closer to the ideal society everyone dreams of and promised that no one will be left behind.