South Africa Prepares Bill to Form State-Firm Holding Company

Rene Vollgraaff
·1 min read
4

(Bloomberg) -- South Africa’s minister of public enterprises will soon introduce a bill in parliament to establish a government firm that will own and manage at least 13 of the country’s state-owned companies.

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The National State Enterprises Bill will establish the State Asset Management SOC Ltd. and provide for the phased transfer of state enterprises to the holding company, according to an explanatory note dated Jan. 9 in the Government Gazette.

Read more: South African Law to Facilitate Holding Company for State Firms

Many of South Africa’s state-owned companies, including power utility Eskom Holdings SOC Ltd., rail and ports operator Transnet SOC Ltd. and arms maker Denel SOC Ltd. have been plagued by mismanagement and corruption. These firms are currently overseen by the Department of Public Enterprises.

The bill listed the following entities for potential transfer to the new holding company:

  • Air Traffic and Navigation Services Co. Ltd

  • Airports Co. Ltd.

  • Broadband Infraco SOC Ltd.

  • CEF (Pty) Ltd.

  • Denel

  • Eskom

  • Sentech SOC Ltd.

  • South African Airways SOC Ltd.

  • South African Forestry Co. SOC Ltd.

  • South African National Road Agency Ltd.

  • South African Nuclear Energy Corp. Ltd.

  • South African Post Office SOC Ltd.

  • Transnet

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