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    State-Owned Enterprises in South Africa 2022

    Yasmin Mahomedy | South Africa | 30 November 2022

    State-Owned Enterprises in South Africa 2021

    Zia Haffejee | South Africa | 24 June 2021

    State-Owned Enterprises in South Africa 2018

    Ebrahim-Khalil Hassen | South Africa | 18 July 2018

    State-Owned Enterprises in South Africa 2015

    Ebrahim-Khalil Hassen | South Africa | 16 November 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on state-owned companies in South Africa includes information on the SOE sector as a whole and major SOEs such as Eskom, Transnet, SAA, Denel and the Post Office. It includes information on the state of SOEs and their effect on the fiscus and the economy, state capture and corruption, government guarantees and support and regulations. There are profiles of 24 companies including the major SOEs mentioned above and others such as Airports Company South Africa, the Passenger Rail Agency, state-owned funding institutions such as the Industrial Development Corporation and the Land Bank and regulators such as the Financial Sector Conduct Authority.

    State-owned Enterprises in South Africa

    State-owned enterprises (SOEs) play a critical role in South Africa’s economy as they are responsible for providing the infrastructure and services on which the economy depends. This includes the generation of electricity, water provision, freight logistics, commuter transport and telecommunications. Instead of being at the forefront of economic and social transformation, most SOEs have been associated with state capture, financial mismanagement and major governance failures due to weak accountability and inefficiency. Some of the country’s biggest and most important state-owned companies have not met their mandates due to underperformance and require regular bailouts from government. Over the past two decades, government has spent more than R308bn bailing out and recapitalising SOEs.

    Key Issues

    Most SOEs are relying on government bailouts to stay afloat and nearly all are unable to operate effectively and are a threat to the economy as they are not financially viable and failing at maintaining the infrastructure they are responsible for. Corruption and irregular and wasteful expenditure continue, as there is lack of accountability and no measures to counter corruption and mismanagement. Political appointments of boards and senior management, outside internationally-accepted corporate governance rules, have severely impacted procurement practices and company performance. Most SOE boards lack industry-appropriate skills, professionals, and diversity.

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    State-Owned Enterprises in South Africa 2022

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    Industry Overview

    R 6 650.00(ZAR) estimated $ 353.40 (USD)*

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    Historical Reports

    State-Owned Enterprises in South Africa 2021-06-24

    R 6 500.00(ZAR) estimated $345.42 (USD)*

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    State-Owned Enterprises in South Africa 2018-07-18

    R 1 900.00(ZAR) estimated $100.97 (USD)*

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    State-Owned Enterprises in South Africa 2015-11-16

    R 1 900.00(ZAR) estimated $100.97 (USD)*

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 4
    2.3. Size of the Industry 5
    3. LOCAL 6
    3.1. State of the Industry 6
    3.2. Key Issues 18
    3.3. Corporate Actions 18
    3.4. Regulations 19
    3.5. Enterprise Development and Social Development 19
    4. AFRICA 20
    5. INTERNATIONAL 21
    6. INFLUENCING FACTORS 23
    6.1. State Capture and Corruption 23
    6.2. Economic Environment 25
    6.3. Government Guarantees and Support 27
    6.4. Labour 29
    6.5. Environmental Issues 32
    7. COMPETITIVE ENVIRONMENT 32
    7.1. Competition 32
    7.2. Ownership Structure of the Industry 33
    8. SWOT ANALYSIS 33
    9. OUTLOOK 34
    10. REFERENCES 35
    10.1. Publications 35
    10.2. Websites 35
    APPENDIX 1 36
    Summary of Notable Players 36
    COMPANY PROFILES 42
    Air Traffic and Navigation Services Company Ltd 42
    Airports Company South Africa SOC Ltd 46
    Alexkor SOC Ltd 51
    Armaments Corporation of South Africa SOC Ltd 53
    Broadband Infraco SOC Ltd 56
    Denel SOC Ltd 59
    Development Bank of Southern Africa 63
    Eskom Holdings SOC Ltd 66
    Financial Sector Conduct Authority 70
    Independent Development Trust 74
    Industrial Development Corporation of South Africa Ltd 76
    Land and Agricultural Development Bank of South Africa 87
    Passenger Rail Agency of South Africa 91
    Petroleum Oil and Gas Corporation of South Africa SOC Ltd (The) 95
    Sasria SOC Ltd 99
    SEF SOC Ltd 102
    South African Broadcasting Corporation SOC Ltd 106
    South African Forestry Company SOC Ltd 111
    South African Nuclear Energy Corporation SOC Ltd (The) 115
    South African Weather Service 119
    Suid-Afrikaanse Poskantoor SOC Ltd 124
    Telkom SA SOC Ltd 127
    Trans-Caledon Tunnel Authority 131
    Transnet SOC Ltd 134

    Report Coverage

    This report focuses on South Africa’s major state-owned entities and includes information on the major enterprises, their performance and the factors that influence them including the pandemic, economic factors, their debt and performance levels and leadership issues. There are profiles of 24 public entities which include major SOEs such as Transnet, Eskom, South African Airways and Denel, and other entities under state ownership and control such as the Development Bank of Southern Africa and Independent Development Trust.

    State-owned Enterprises South Africa

    The ongoing financial and operational crises faced by a number of major state-owned enterprises (SOEs) casts doubt on their practicality and survival. Total SOE debt stands at a staggering R692.9bn. The most recent budget review indicated that SOEs have reported poor growth, high costs and elevated debt servicing costs, and several appear to be at risk of defaulting on their debts. Prospective reforms and increasing private-sector participation provide some hope for South Africa’s SOEs.

    Corruption

    The Zondo Commission of Inquiry into allegations of state capture in the public sector, including organs of state, has outlined corruption at the highest echelons of entities such as Transnet, Eskom, SAA and Denel and provides some explanation for the extent of the financial mismanagement at these enterprises. The poor performance of SOEs continues to reflect crumbling infrastructure, poor and ever-changing leadership, corruption, wasteful expenditure and mismanagement of funds.

    Major Changes

    The government announced in June that it plans to sell 51% of South African Airways to a private consortium and that it would retain a minority stake. The proposed sale will amount to the first privatisation in decades and represents a major shift from the state’s stance on SOE control and ownership. Government will also now permit independent power producers to increase self-generation without obtaining a licence from 1MW to 100MW. Both announcements represent a major shift in government’s stance and indicate an awareness of the SOEs’ limitations.

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    State-Owned Enterprises in South Africa 2021

    Full Report

    R 6 500.00(ZAR) estimated $345.42 (USD)*

    Buy Now +

    Industry Overview

    R 4 550.00(ZAR) estimated $ 241.80 (USD)*

    Buy Now +

    Historical Reports

    State-Owned Enterprises in South Africa 2022-11-30

    R 9 500.00(ZAR) estimated $504.85 (USD)*

    View Report Add to Cart

    State-Owned Enterprises in South Africa 2018-07-18

    R 1 900.00(ZAR) estimated $100.97 (USD)*

    View Report Add to Cart

    State-Owned Enterprises in South Africa 2015-11-16

    R 1 900.00(ZAR) estimated $100.97 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 7
    4.1. Local 7
    4.1.1. Corporate Actions 10
    4.1.2. Regulations 11
    4.1.3. Socio-economic development 12
    4.2. International 12
    5. INFLUENCING FACTORS 13
    5.1. Coronavirus 13
    5.2. Economic Environment 14
    5.3. State capture and corruption 15
    5.4. Government guarantees and support 15
    5.5. Environmental Concerns 17
    5.6. Labour 19
    6. COMPETITION 19
    7. SWOT ANALYSIS 21
    8. OUTLOOK 22
    9. REFERENCES 22
    9.1. Publications 22
    9.2. Websites 23
    APPENDIX 1 25
    Summary of Notable players 25
    COMPANY PROFILES 31
    AIR TRAFFIC AND NAVIGATION SERVICES COMPANY LTD 31
    AIRPORTS COMPANY SOUTH AFRICA SOC LTD 35
    ALEXKOR SOC LTD 40
    ARMAMENTS CORPORATION OF SOUTH AFRICA SOC LTD 43
    BROADBAND INFRACO SOC LTD 46
    DENEL SOC LTD 49
    DEVELOPMENT BANK OF SOUTHERN AFRICA 54
    ESKOM HOLDINGS SOC LTD 58
    FINANCIAL SECTOR CONDUCT AUTHORITY 62
    INDEPENDENT DEVELOPMENT TRUST 67
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 70
    LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA 81
    PASSENGER RAIL AGENCY OF SOUTH AFRICA 86
    PETROLEUM OIL AND GAS CORPORATION OF SOUTH AFRICA SOC LTD (THE) 90
    SEF SOC LTD 94
    SOUTH AFRICAN AIRWAYS SOC LTD 98
    SOUTH AFRICAN BROADCASTING CORPORATION SOC LTD 102
    SOUTH AFRICAN FORESTRY COMPANY SOC LTD 107
    SOUTH AFRICAN NUCLEAR ENERGY CORPORATION SOC LTD (THE) 111
    SOUTH AFRICAN WEATHER SERVICE 115
    SUID-AFRIKAANSE POSKANTOOR SOC LTD 119
    TELKOM SA SOC LTD 123
    TRANS-CALEDON TUNNEL AUTHORITY 127
    TRANSNET SOC LTD 130

    Report coverage

    The report on South African SOCs focuses on current conditions, highlighting underperforming entities, governance failures and the possibility of privatisation in the SOC sector. The report profiles 24 of the major SOCs, including South African Airways (SAA) which during 2017 was recapitalised to the tune of R13.7bn, and the South African Post Office (SAPO) which received R3.7bn from government. Also profiled is the Development Bank of Southern Africa t/a DBSA, which seeks to "accelerate sustainable socio-economic development and improve the quality of life of the people of the Southern African Development Community (SADC) by driving financial and non-financial investments in the social and economic infrastructure sector.”

    State-Owned Companies

    This report focuses on developments in State-Owned Corporations (SOCs), also known as State-Owned Enterprises (SOEs), which according to the National Treasury had assets of R1,225.2bn in the 2016/17 financial year. The most recent Presidential Review Report indicated that there are more than 700 SOCs, including provincial and municipal entities and 172 national government entities.

    State Capture

    SOCs are established primarily to provide public goods and services and to play a developmental role in society. The importance of these entities being run ethically and efficiently is underlined by the crucial role that they play in sectors such as energy, transport, logistics and arms manufacturing. In South Africa, however, the larger South African SOCs have been accused of participating in large-scale corruption, which has been termed ‘state capture’ over the last few years. In 2017 parliament hosted an inquiry into the state capture of Eskom, Transnet and Denel and a Commission of Inquiry into general state capture, headed by Deputy Chief Justice Ray Zondo, has since been commissioned.

    Report coverage

    The report on South African SOCs focuses on current conditions, highlighting underperforming entities, governance failures and the possibility of privatisation in the SOC sector. The report profiles 24 of the major SOCs, including South African Airways (SAA) which during 2017 was recapitalised to the tune of R13.7bn, and the South African Post Office (SAPO) which received R3.7bn from government. Also profiled is the Development Bank of Southern Africa t/a DBSA, which seeks to "accelerate sustainable socio-economic development and improve the quality of life of the people of the Southern African Development Community (SADC) by driving financial and non-financial investments in the social and economic infrastructure sector.”

    Read More..
    State-Owned Enterprises in South Africa 2018

    Full Report

    R 1 900.00(ZAR) estimated $100.97 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 70.68 (USD)*

    Buy Now +

    Historical Reports

    State-Owned Enterprises in South Africa 2022-11-30

    R 9 500.00(ZAR) estimated $504.85 (USD)*

    View Report Add to Cart

    State-Owned Enterprises in South Africa 2021-06-24

    R 6 500.00(ZAR) estimated $345.42 (USD)*

    View Report Add to Cart

    State-Owned Enterprises in South Africa 2015-11-16

    R 1 900.00(ZAR) estimated $100.97 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 18
    4.1.2. Regulations 19
    4.1.3. Enterprise Development and Social Economic Development 20
    4.2. Continental 21
    4.3. International 22
    5. INFLUENCING FACTORS 24
    5.1. Economic and Political Environment 24
    5.2. Labour 25
    5.3. Information Technology and/or Technology 27
    5.4. Environmental Concerns 28
    6. COMPETITION 28
    7. SWOT ANALYSIS 29
    8. OUTLOOK 30
    9. REFERENCES 31
    9.1. Publications 31
    9.2. Websites 32
    COMPANY PROFILES 33
    AIR TRAFFIC AND NAVIGATION SERVICES COMPANY LTD 33
    AIRPORTS COMPANY SOUTH AFRICA SOC LTD 36
    ALEXKOR SOC LTD 41
    ARMAMENTS CORPORATION OF SOUTH AFRICA SOC LTD 44
    BROADBAND INFRACO SOC LTD 47
    CEF (SOC) LTD 50
    DENEL SOC LTD 54
    DEVELOPMENT BANK OF SOUTHERN AFRICA 58
    ESKOM HOLDINGS SOC LTD 61
    FINANCIAL SECTOR CONDUCT AUTHORITY 66
    INDEPENDENT DEVELOPMENT TRUST 68
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 71
    LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA 82
    PASSENGER RAIL AGENCY OF SOUTH AFRICA 87
    PETROLEUM OIL AND GAS CORPORATION OF SOUTH AFRICA SOC LTD (THE) 90
    SOUTH AFRICAN AIRWAYS (SOC) LTD 93
    SOUTH AFRICAN BROADCASTING CORPORATION SOC LTD 97
    SOUTH AFRICAN EXPRESS AIRWAYS (SOC) LTD 101
    SOUTH AFRICAN FORESTRY COMPANY (SOC) LTD 104
    SOUTH AFRICAN NUCLEAR ENERGY CORPORATION SOC LTD (THE) 107
    SOUTH AFRICAN WEATHER SERVICE 110
    SUID-AFRIKAANSE POSKANTOOR (SOC) LTD 112
    TELKOM SA SOC LTD 115
    TRANS-CALEDON TUNNEL AUTHORITY 120
    TRANSNET SOC LTD 122

    Report Coverage

    The report on South African SOCs focuses on the challenges faced by the state-owned entities, proposed legislation and possible measures to improve performance and stimulate economic growth. The report also profiles 12 of the major SOCs, including the Public Investment Corporation SOC Ltd (PIC), one of the largest investment managers in Africa, managing assets of over R1.8-trillion.

    State-Owned Corporations

    This report focuses on developments in State-Owned Corporations (SOCs), also known as State-Owned Enterprises (SOEs) between July 2010 and early November 2015. The Presidential Commission on SOCs reports that there are 512 SOCs involved in many economic sectors and situated countrywide. Whilst a consolidated estimate of the total asset base value of SOCs is not readily available, Transnet, South African Express, Eskom, Denel, the South African Forestry Company (SAFCOL) and Alexkor which all report directly to the Department of Public Enterprises (DPE), have an asset base value of R755bn. Government firmly believes that SOCs can play a crucial role in South Africa’s plans to increase economic growth and create employment.

    Confronted by Problems

    A number of proposed legislative changes are in response to the many and varied problems experienced by the country’s SOCs. A number of boards, including those of Eskom and the Land Bank, have not functioned well and in some cases, SOCs have been transferred from one department to another. The most notable of these is SAA, which has been moved from the DPE to the National Treasury. Many SOCs have been embroiled in corruption and financial mismanagement-related cases. This financial year the Petroleum, Oil and Gas Corporation of South Africa SOC Ltd (PETROSA) reported a loss of R14.6bn while the Public Protector found evidence of maladministration and financial mismanagement at the Passenger Rail Agency of South Africa (PRASA).

    Read More..
    State-Owned Enterprises in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $100.97 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 70.68 (USD)*

    Buy Now +

    Historical Reports

    State-Owned Enterprises in South Africa 2022-11-30

    R 9 500.00(ZAR) estimated $504.85 (USD)*

    View Report Add to Cart

    State-Owned Enterprises in South Africa 2021-06-24

    R 6 500.00(ZAR) estimated $345.42 (USD)*

    View Report Add to Cart

    State-Owned Enterprises in South Africa 2018-07-18

    R 1 900.00(ZAR) estimated $100.97 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF INDUSTRY 4
    4. STATE OF THE INDUSTRY 6
    4.1. Local 6
    4.1.1. Corporate Actions 8
    4.1.2. Regulations 10
    4.1.3. Enterprise Development and Social Economic Development 11
    4.2. Continental 12
    4.3. International 14
    5. INFLUENCING FACTORS 15
    5.1. Economic Environment 15
    5.2. Labour Resources 17
    5.3. Technology, Research and Development (R&D) and Innovation 19
    5.4. Environmental Concerns 20
    6. COMPETITION 20
    7. SWOT ANALYSIS 22
    8. OUTLOOK 23
    9. REFERENCES 23
    9.1. Publications 23
    9.2. Websites 24
    COMPANY PROFILES 25
    ALEXKOR SOC LTD 25
    DENEL SOC LTD 28
    ESKOM HOLDINGS SOC LTD 34
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 38
    PASSENGER RAIL AGENCY OF SOUTH AFRICA 44
    PETROLEUM OIL AND GAS CORPORATION OF SA (SOC) LTD (THE) 48
    SOUTH AFRICAN AIRWAYS (SOC) LTD 51
    SOUTH AFRICAN BROADCASTING CORPORATION LTD 55
    SOUTH AFRICAN EXPRESS AIRWAYS (SOC) LTD 59
    SOUTH AFRICAN FORESTRY COMPANY (SOC) LTD 63
    SUID-AFRIKAANSE POSKANTOOR (SOC) LTD 66
    TRANSNET SOC LTD 69

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