The Science Of ...

Should South Africa privatise some state-owned enterprises?

State-owned enterprises (SOEs) – also referred to as a parastatals – are companies who operate commercially on behalf of an owner government.

In South Africa the Department of Public Enterprises is the shareholder representative of the government with oversight responsibility for SOEs.

The Minister of Public Enterprises is Lynne Brown.

Examples of SOEs include Eskom, South African Airways, Transnet, Telkom SA and others.

The Money Show’s Bruce Whitfield interviewed Rory Ord, Executive at RisCura, for his weekly “The Science Of” feature.

Scroll down for quotes from the audio below.

Government can realise cash right now and they can stop a future drain on resources.

Rory Ord, Executive at RisCura

Governments worldwide are running short of tax so the issue of privatisation is, naturally, on the table.

Rory Ord, Executive at RisCura

The Airports Company of South Africa is very capital intensive. But it is very profitable in its own right.

Rory Ord, Executive at RisCura

There is no reason why airports can’t be privatised.

Rory Ord, Executive at RisCura

Water is one of the most frequently privatised infrastructure in the world.

Rory Ord, Executive at RisCura

It probably matters who we sell to. But we’re friendly with a lot of countries around the world.

Rory Ord, Executive at RisCura

Everything is sellable at the right price.

Rory Ord, Executive at RisCura

We value Infraco at about R500 million. Privatising this SOE isn’t likely to cause political fallout.

Rory Ord, Executive at RisCura

Transnet - or portions thereof – is the most likely target for privatisation when considering the large SOEs.

Rory Ord, Executive at RisCura

Subscribe to our Business Wrap Newsletter

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
What SA can learn from China about managing state-owned enterprises

What SA can learn from China about managing state-owned enterprises

South Africa could learn a thing or two from China's governance structures and the operation of their state-owned enterprises.

Transnet invested a record R33.6bn in a year, mainly on modernising the railways

Transnet invested a record R33.6bn in a year, mainly on modernising the railways

Capital investment by the parastatal is at levels never before seen. We interviewed Transnet's acting CEO Siyabonga Gama.

Can Brian Molefe do at Eskom what he did at Transnet?

Can Brian Molefe do at Eskom what he did at Transnet?

An emerging market economist discusses whether acting Eskom CEO Brian Molefe can turn the limping parastatal around.

Ethiopian Airlines to take over from SAA as Africa’s number 1 – CAPA

Ethiopian Airlines to take over from SAA as Africa’s number 1 – CAPA

Ethiopian Airlines has doubled its passenger numbers since 2009 and making record profits. Soon it'll be Africa's market leader.

4 steps Government is taking to save South African Airways

4 steps Government is taking to save South African Airways

SAA’s latest turnaround strategy is taking shape and, unlike the ones that came before, it’s rather radical.

Popular articles
"Case against President Zuma is strong, it is sound and ready to go to trial"

"Case against President Zuma is strong, it is sound and ready to go to trial"

Barry Bateman, EWN reporter in the Supreme Court of Appeal's ruling to reinstate charges and what this means for President Zuma.

V&A Waterfront responds to claims of sewage water on customer's car

V&A Waterfront responds to claims of sewage water on customer's car

A customer was not happy to find her car in a huge puddle of effluent water after doing her shopping at the V&A Waterfront.

Heroic fire fighter saves drowning child while on holiday

Heroic fire fighter saves drowning child while on holiday

It's not clear how long the little girl (3) spent underwater but it took ten minutes to resuscitate her.

De Waal Drive is now renamed after Philip Kgosana, but who was he? Here's a look

De Waal Drive is now renamed after Philip Kgosana, but who was he? Here's a look

Cape Town's well-known bend has been renamed in honour of PAC stalwart Philip Kgosana, but very few know his historic importance.

A list of words that people need to 'basically' stop using

A list of words that people need to 'basically' stop using

These words have become so overused and pretentious that listeners believe that they've lost their meaning.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.