The inaugural meeting of the Presidential State-owned Enterprises Council (PSEC) was held on a virtual platform, Thursday, 5 November 2020, chaired by President Cyril Ramaphosa.
The President appointed members of the Council in June 2020 to support government in repositioning state-owned enterprises (SOEs) as effective instruments of economic transformation and development. The Council is composed of Deputy President David Mabuza, Cabinet Ministers and eminent labour, business and academic leadership.
The Council has been tasked by the President to advise Government on the repositioning of SOEs, development of appropriate governance frameworks; to identify specific interventions to stabilise and strengthen SOEs’ financial and operational performance and reduce reliance on the fiscus, and ensure SOEs are repurposed to align with national priorities.
The President called on the Council to work with haste to ensure prioritisation of those SOEs which can have a greater impact on the economy, mobilisation of private capital, and increased operational efficiencies in support of improved national output.
In this regard a categorisation system that enables prioritisation of SOEs based on developmental and economic priorities should be considered.
The Council resolved to set up work streams in response to the areas of priority identified; to commence work immediately, and report back to the President by January 2021 when the next meeting is expected to be convened.
The President called on the Council to ensure that in executing their mandate, the requirements of the Economic Reconstruction and Recovery Plan, which intends to build a better and inclusive economy, should inform solutions proposed.