Implementing infrastructure development depended on the capacity of South Africa’s state owned enterprises (SOEs), Deputy President Cyril Ramaphosa said on Tuesday, according to a report by News 24.
In prepared opening remarks at the South Africa-China State Owned Enterprises seminar in Beijing on Tuesday, Ramaphosa said the last five years had seen an increased role for SOEs in the economy.

“Over the next five years, government has ambitious plans to change the structure of the South African economy,” he said.

“The National Development Plan, which provides an overarching framework for social and economic progress to 2030, recognises the need for continued state participation in the economy.”

In his State of the Nation Address in February, President Jacob Zuma announced a nine point plan that outlined key interventions to “re-ignite the South Africa economy”.

The plan recognised that South Africa’s government, in partnership with the private sector, had to play a stronger role to create a conducive environment for sustained growth.

“This places further demands on our state-owned enterprises. Many of these SOEs are confronting challenges that impact on their ability to support the execution of government policy,” Ramaphosa said.

“We are therefore embarking on a programme to strengthen SOEs. We seek to enhance the overall competitiveness of the economy and support South Africa’s industrialisation programme.”

A new shareholder policy was being developed to ensure the current portfolio was fit for purpose, and legislation was being developed to codify the participation of the state as a shareholder.

“China has successfully undergone similar processes and managed to refocus its SOE portfolio to be at the forefront of its development,” the deputy president said.

SOEs were a critical agent in reducing poverty and improving access to basic services, as government were able to provide infrastructure, skills development and new employment opportunities.

The relationship between the public enterprises department and the Chinese State-owned Assets Supervision and Administration Commission enabled the sharing of information on shareholder management practises, tools, and governance frameworks.

“In working side by side with us in forging a capable developmental state, creating work and developing skills, China has become an invaluable companion in the national effort to bring hope and restore dignity to millions of our people.”