South African Airways, Eskom, Transnet and other underperforming parastatals could be whipped into shape in the near future.
This after Deputy President Cyril Ramaphosa said that Chinese executors would come to South Africa to help share advice on how to effectively run state-owned enterprises (SOEs).
(Also read our article: Ramaphosa praises Chinese parastatals in Parly, but dodges visa law tensions)
Financial journalists claim that the success of many of China's SOEs is partly due to the reform of their shareholding system.
Dr Iraj Abedian, veteran economist and CEO of Pan African Holdings says that South African needs to extensively study SOEs and strategic investors.
There is definitely a lot to learn from Chinese governance structures. But the question is whether we are ready in South Africa, to move with the speed and comprehensiveness that our SOEs need so desperately.— Dr Iraj Abedian, CEO of Pan African Holdings
According to Abedian, South Africa needs to change the way they approach their strategic objectives. He says that policies should be refined as they are implemented in our SOEs.
Abedian says that though China is successful in their governance structures, South Africa must separate political motives and effective implementation.
Listen to the full conversation, with Pippa Hudson standing in, on CapeTalk's Breakfast with Kieno Kammies:
This article first appeared on 702 : What SA can learn from China about managing state-owned enterprises