Corrective action has been taken elsewhere and turned around state-owned enterprises
The challenges faced by SA’s state-owned entities are not unique; they’re a global phenomenon. The countries that invested time in critically analysing their parastatals and took corrective action in time have succeeded in turning their fortunes around.
The following factors hinder SOEs’ efficiency: conflicting objectives; lack of financial management; failure to comply with reporting standards as required by the relevant legislative and regulatory bodies; board and remuneration and incentive practices are complex and contentious; and insufficient measures are in place for evaluating performance.
It is extremely important that these challenges be critically analysed and the necessary actions taken to ensure improved performance by SA’s SOEs. These entities need to be adequately supported to ensure implementation of the necessary reforms. Without being resolute in implementing the necessary reforms, we will continue to put government finances under unnecessary pressure.Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to
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