President Ramaphosa Assigns Responsibilities for State-Owned Enterprises

26 August 2024

President Cyril Ramaphosa has taken a decisive step in reconfiguring the management of South Africa’s state-owned enterprises (SOEs). In a recent move, he has assigned shareholder responsibilities for several SOEs, previously under the Department of Public Enterprises, to their respective line-function Ministries.

The President, invoking Section 97 of the Constitution of the Republic of South Africa, 1996, signed a series of proclamations transferring the administration, powers, and functions related to these entities. The allocations are as follows:

• Alexkor: Now under the authority of the Minister of Mineral and Petroleum Resources.
• Denel: The Minister of Defence and Military Veterans assumes responsibility.
• Eskom: The Minister of Electricity and Energy will oversee this critical utility.
• Safcol: The Minister of Forestry, Fisheries and the Environment takes charge.
• South African Airways and South African Express: Both airlines are now under the jurisdiction of the Minister of Transport.
• Transnet: Also placed under the Minister of Transport.

Additionally, specific sections of the Overvaal Resorts Limited Act of 1993 and the Overvaal Resorts Limited Act Repeal Act of 2019 have been assigned to the Minister of Water and Sanitation.

President Ramaphosa has also appointed the Minister in the Presidency responsible for Planning, Monitoring and Evaluation as the executive authority of the Department of Public Enterprises (DPE). This department will continue its operations until a seamless transfer of human and financial resources is complete. The Minister in the Presidency is now empowered to execute all relevant powers and functions in accordance with the Public Service Act of 1994 and the Public Finance Management Act of 1999.

In a further move towards reform, the Minister in the Presidency has been tasked with finalising the National State Enterprise Bill. This bill will outline the future of shareholder responsibility across SOEs, which will eventually be consolidated under a national enterprise holding company in a phased manner.

This restructuring marks a significant shift in the oversight and management of South Africa’s SOEs, aimed at enhancing efficiency, accountability, and governance within these critical entities.