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

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