South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...

the

Department of Public Enterprises The Department of Public Enterprises (DPE) is one of the ministries of the South African government. It is the government's shareholder representative with oversight responsibility for a number of state-owned enterprises (SoEs). Enterprises It ...

is the shareholder representative of the South African Government with oversight responsibility for state-owned enterprises in key sectors. Some companies are not directly controlled by the Department of Public Enterprises, but by various other departments. Further, not all state owned entities are registered as companies. State-owned enterprises play a significant role in the South African economy. In key sectors such as electricity, transport (air, rail, freight, and pipelines), and telecommunications, SOEs play a lead role, often defined by law, although limited competition is allowed in some sectors (i.e., telecommunications and air). The government's interest in these sectors often competes with and discourages foreign investment. The

minister has publicly stated that South Africa's SOEs should advance economic transformation, industrialization and import substitution. DPE has oversight responsibility in full or in part for six of the approximately 700 SOEs that exist at the national, provincial, and local levels:

Alexkor Alexkor is a South African unincorporated joint venture diamond mining company that falls under the Department of Public Enterprises. It was previously a state-owned enterprise, when in 2007 it entered a government-funded pooling and sharing ...

(diamonds),

Denel Denel SOC Ltd is a South African state-owned aerospace and military technology conglomerate established in 1992. It was created when the manufacturing subsidiaries of Armscor were split off in order for Armscor to become the procurement agency ...

(military equipment),

Eskom Eskom Hld SOC Ltd or Eskom is a South African electricity public utility. It was established in 1923 as the Electricity Supply Commission (ESCOM) and was also known by its Afrikaans name Elektrisiteitsvoorsieningskommissie (EVKOM). Eskom repre ...

(electricity generation),

Transnet Transnet SOC Ltd is a large South African rail, port and pipeline company, headquartered in the Carlton Centre in Johannesburg. It was formed as a limited company on 1 April 1990. A majority of the company's stock is owned by the Department ...

(railway transport and pipelines)

South African Express South African Express Airways SOC Ltd, known as South African Express or simply SA Express, was a state-owned airline based in South Africa that started operations on 24 April 1994. Although the airline was operationally independent of South ...

, South African Forestry Company (SAFCOL) (forestry),

South African Broadcasting Corporation The South African Broadcasting Corporation (SABC) is the public broadcaster in South Africa, and provides 19 radio stations ( AM/ FM) as well as six television broadcasts to the general public. It is one of the largest of South Africa's state ...

. These seven SOEs employ approximately 105,000 people. The states share of the investment was 21% while private enterprise contributed 63% (government spending made up the remainder of 16%). The IMF estimates that the debt of the SOEs would add 13.5% to the overall national debt.

History

Many state-owned firms were established during the apartheid era to counter the impact of international sanctions against the country. The ANC government initially sold stakes in the companies, and lowered import tariffs. Those measures were reversed following opposition from

COSATU The Congress of South African Trade Unions (COSATU) is a trade union federation in South Africa. It was founded in 1985 and is the largest of the country's three main trade union federations, with 21 affiliated trade unions.One Union expelled, ...

and the

South African Communist Party The South African Communist Party (SACP) is a communist party in South Africa. It was founded in 1921 as the Communist Party of South Africa (CPSA), tactically dissolved itself in 1950 in the face of being declared illegal by the governing Na ...

. By 2007, an alliance of unions and leftist factions within the ANC had unseated President

Thabo Mbeki Thabo Mvuyelwa Mbeki KStJ (; born 18 June 1942) is a South African politician who was the second president of South Africa from 14 June 1999 to 24 September 2008, when he resigned at the request of his party, the African National Congress (ANC ...

, replacing him with

Jacob Zuma Jacob Gedleyihlekisa Zuma (; born 12 April 1942) is a South African politician who served as the fourth president of South Africa from 2009 to 2018. He is also referred to by his initials JZ and clan name Msholozi, and was a former anti-aparth ...

. The new ANC policy aimed at expanding the role of SOEs in the economy, following the example of China. Although in 2015 and 2016, senior government leaders discussed allowing private-sector investment into some of the more than 700 state-owned enterprises and recently released a report of a presidential review commission on SOE, which called for nationalization of SOEs, no concrete action has been taken on the topic yet.

Financial troubles and corruption

By the end of the Zuma administration in 2018

corruption Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...

within South African state owned enterprises by individuals connected to government such as the controversial

Gupta family The Gupta family is a wealthy Indian-born family with business interests in South Africa, whose most notable members are brothers Ajay, Atul, and Rajesh "Tony" Gupta—as well as Atul's nephews Varun, and US-based Ashish and Amol. The family ow ...

had led to many enterprises facing deep financial difficulty. Deepening financial issues, mismanagement, maladministration and government bailouts of enterprises such as the

South African Airways South African Airways (SAA) is the flag carrier airline of South Africa. Founded in 1934, the airline is headquartered in Airways Park at O. R. Tambo International Airport in Johannesburg and operated a hub-and-spoke network, serving ten destin ...

, PRASA, and

caused increased public controversy. By the end of 2015–16 combined government guarantees on debts owed by state owned enterprises had reached R467 billion (equivalent to US$33.1 billion) and were expected to reach R500 billion by 2020 representing 10 percent of South Africa's GDP. The situation at Eskom was regarded as so serious as to lead the South African business newspaper ''Business Day'' to speculate that it could cause a national

banking crisis A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system (where banks no ...

. In 2021 the South African Treasury reported that South African Airways had accumulated a total loss between 2008 and 2020 of R32 billion (US$ 2.1 billion) and received a total of R60 billion (US$ 4 billion) in government guarantees.

Table list

The Public Finance Management Act distinguishes between three types of public entities. Schedule 1 entities compromise Constitutional Institutions including the

Independent Electoral Commission An election commission is a body charged with overseeing the implementation of electioneering process of any country. The formal names of election commissions vary from jurisdiction to jurisdiction, and may be styled an electoral commission, a c ...

and

Public Protector The Public Protector in South Africa is one of six independent state institutions set up by the country's Constitution to support and defend democracy. According to Section 181 of the Constitution: * These institutions are independent, and subje ...

among others. Schedule 2 entities are listed as Major Public Entities and have greater autonomy than Schedule 3 entities. Schedule 2 entities are listed below. Schedule 3 entities are subdivided into: * National Public Entities - which generally function as specialised agencies or not-for-profit organisations such as the

Companies and Intellectual Property Commission The Companies and Intellectual Property Commission (CIPC) is an agency of the Department of Trade and Industry in South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is boun ...

, the

Human Sciences Research Council The Human Sciences Research Council (HSRC) of South Africa is Africa's largest dedicated social science and humanities research agency and policy think tank. It primarily conducts large-scale, policy-relevant, social-scientific projects for publi ...

and the

Road Accident Fund The Road Accident Fund (RAF) is a South African state insurer that provides liability and collision insurance coverage to all drivers in South Africa . RAF does not cover property damage (such as damage to vehicles, buildings, and the contents ...

; * National Government Business Enterprises - which function as profit-seeking businesses including the

Council for Scientific and Industrial Research The Council for Scientific and Industrial Research (CSIR) is South Africa's central and premier scientific research and development organisation. It was established by an act of parliament in 1945 and is situated on its own campus in the cit ...

Passenger Rail Agency of South Africa The Passenger Rail Agency of South Africa (PRASA) is a South African state-owned enterprise responsible for most passenger rail services in the country. History In 1910, as a consequence of the formation of the Union of South Africa, all railway ...

and

Rand Water Rand Water, previously known as the Rand Water Board, is a South African water utility that supplies potable water to the Gauteng province and other areas of the country and is the largest water utility in Africa. The water is drawn from numerous s ...

; * Provincial Public Entities - which have a provincial focus and function as provincial agencies such as the Gautrain Management Agency and various provincial gambling and liquor boards; * Provincial Government Business Enterprises - which are profit-seeking businesses controlled by provincial government and includes the

Richards Bay Industrial Development Zone Richards may refer to: *Richards (surname) In places: * Richards, New South Wales, Australia * Richards, Missouri, United States * Richards, Texas Richards is an unincorporated community and census-designated place (CDP) in eastern Grimes Coun ...

and the

East London Industrial Development Zone East or Orient is one of the four cardinal directions or points of the compass. It is the opposite direction from west and is the direction from which the Sun rises on the Earth. Etymology As in other languages, the word is formed from the fac ...

Full list

There are currently 108 State Owned Enterprises in South Africa *Accounting Standards Board *Agricultural Research Council (ARC) *Air Traffic and Navigation Services Company *Airports Company South Africa (ACSA) *Alexkor Limited *Armaments Corporation of South Africa (ARMSCOR) *Blind SA *Brand South Africa *Breede-Gouritz CMA *Broadband Infraco *Broadcasting Complaints Commission of South Africa (BCCSA) *Cape Town International Airport *Central Energy Fund (CEF) *Commission for Conciliation, Mediation and Arbitration *Commission for Employment Equity *Companies and Intellectual Property Commission (CIPC) *Compensation Fund *Competition Commission (The) *Competition Tribunal *Council for Geoscience *Council for Medical Schemes *Council on Higher Education *Denel (Pty) Ltd *

Development Bank of Southern Africa The Development Bank of Southern Africa (DBSA) is a development finance institution wholly owned by the Government of South Africa. The bank intends to "accelerate sustainable socio-economic development in the Southern African Development Communi ...

(DBSA) *Eskom *Estate Agency Affairs Board (The) *Export Credit Insurance Corporation of South Africa (Ltd.) *Film and Publication Board (FPB) *Financial Sector Conduct Authority (FSCA) *Free State Development Corporation *Freedom Park *Government Employees Medical Scheme (GEMS) *Government Employees Pension Fund (GEPF) *Health and Welfare Sector Education and Training Authority (HWSETA) *Health Professions Council of South Africa (HPCSA) *Housing Development Agency (HDA) *Human Sciences Research Council (HSRC) *Independent Development Trust *Industrial Development Corporation td(IDC) *Ingonyama Trust Board *Institute of People Management (IPM) *Ithala Development Finance Corporation (Ltd) *Khula Enterprise Finance (Ltd) *King Shaka International Airport *Land Bank and Agriculture Bank of South Africa Land Bank *Legal Aid South Africa *Limpopo Economic Development Enterprise *Media Development and Diversity Agency (MDDA) *Mhlathuze Water *Mining Qualification Authority *Mintek (Council for Mineral Technology) *National Advisory Council on Innovation (NACI) *National Agricultural Marketing Council *National Archives of South Africa (NASA) *National Arts Council of South Africa (NACSA) *National Consumer Commission (The) (NCC) *National Credit Regulator (NCR) *National Development Agency (NDA) *National Economic Development and Labour Council (NEDLAC) *National Electronic Media of South Africa (NEMISA) *National Empowerment Fund *National Energy Regulator (NERSA) *National Film and Video Foundation *National Gambling Board of South Africa *National Home Builders Registration Council (NHBRC) *National House of Traditional Leaders *National Housing Finance Corporation (NHFC) *National Lotteries Commission *National Nuclear Regulator (NNR) *National Peace Accord Trust (NPAT) *National Ports Authority (NPA) *National Student Financial Aid Scheme (NSFAS) *National Youth Development Agency (NYDA) *Nelson Mandela Museum *North West Development Corporation *

OR Tambo International Airport O. R. Tambo International Airport is an international airport situated in Kempton Park, Gauteng, Kempton Park, Gauteng, South Africa. It serves as the primary airport for domestic and international travel to/from South Africa and since 2020, ...

*Passenger Rail Agency of South African (PRASA) *Pebble Bed Modular Reactor (Pty) Limited (PBMR) *Perishable Products Export Control Board *PetroSA (Pty) Ltd *Private Security Industry Regulatory Authority (PSIRA) *Public Investment Corporation (PIC) *Rand Water *Refugee Appeal Board *Road Accident Fund (RAF) *Road Traffic Infringement Agency (RTIA) *Road Traffic Management Corporation (RTMC) *Robben Island Museum *Safety and Security, Sector Education & Training Authority (SASSETA) *Small Enterprise Development Agency (SEDA) *Small Enterprise Finance Agency (SEFA) *South African Agency For Science and Technology Advancement (SAASTA) *South African Airways (SAA) *South African Broadcasting Corporation (SABC) *South African Bureau of Standards (SABS) *South African Civil Aviation Authority *South African Council for Educators (SACE) *South African Council for Social Service Professions (SACSSP) *South African Diamond and Precious Metals Regulator *South African Express *South African Forestry Company (Ltd) (SAFCOL) *South African Heritage Resources Agency *South African Institute for Drug-Free Sport *South African Library for the Blind *

South African Local Government Association The South African Local Government Association (SALGA) is a national, voluntary political association in South Africa. It is a public entity composed of South Africa's local governments. The association's members are made of all South Africa's 257 ...

(SALGA) *

South African National Accreditation System The South African National Accreditation System (SANAS) is the official accreditation body for South Africa. Founded in 1996, SANAS is headquartered in Pretoria, South Africa. SANAS accreditation certificates are a formal recognition by the G ...

*South African National Council for the Blind * South African National Parks (SANParks) * South African National Road Agency *South African Nuclear Energy Corporation SOC Ltd (NECSA) *

South African Post Office South African Post Office (SA Post Office) is the national postal service of South Africa and as a state owned enterprise, its only shareholder is the South African government. In terms of South African law, the Post Office is the only entity ...

(SAPO) *

South African Qualifications Authority The South African Qualifications Authority (SAQA) is a statutory body, regulated in terms of the ''National Qualifications Framework Act'' No. 67 of 2008. It is made up of 29 members appointed by the Minister of Education in consultation with ...

(SAQA) *

South African Reserve Bank The South African Reserve Bank (SARB) is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920", as a direct result of the abnormal monetary and financial condit ...

(SARB) *

South African Social Security Agency South African Social Security Agency (SASSA) is a national agency of the South African government created in April 2005 to administer South Africa's social security system, including by distributing social grants, on behalf of the Department of ...

(SASSA) *South African Special Risk Insurance Association (SASRIA) *South African State Theatre - Pretoria *South African Tourism *South African Veterinary Council *

South African Weather Service The South African Weather Service (SAWS) is the meteorological service under the South African government's Department of Environmental Affairs and Tourism. SAWS is a member of the World Meteorological Organization. Under the South African Wea ...

(SAWS) *

Special Investigating Unit The Special Investigating Unit (SIU) is an independent agency of the South African government which investigates corruption and maladministration in state institutions. It was first established in July 1997 by President Nelson Mandela, although i ...

(SIU) *State Information Technology Agency (SITA) *Tax Ombud: South Africa *Technology Innovation Agency *

Telkom SA Telkom SA SOC Limited is a South African wireline and wireless telecommunications provider, operating in more than 38 countries across the African continent. Telkom is majority state-owned (55.3%) with the South African government owning 40. ...

(Ltd) *

(Ltd) *Universal Service Agency and Access of South Africa *Water Research Commission (WRC)

References

External links

Index of all South African state owned enterprises
{{South Africa topics

History

Financial troubles and corruption

Table list

Full list

See also

References

External links