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Source: South Africa News Agency

President Cyril Ramaphosa will today chair the virtual inaugural meeting of the Presidential State-Owned Enterprises Council (PSEC).

In June 2020, the President appointed members of the PSEC to support government in repositioning State-owned enterprises (SOEs) as effective instruments of economic transformation and development. 

The inaugural meeting will discuss South Africa’s Economic Reconstruction and Recovery Plan, aimed at restoring the country’s economy, as well as an overview of SOEs and the terms of reference of the council.

The PSEC brings together Ministers responsible for State-owned enterprises and eminent South Africans with proven leadership and strategic capabilities.

This collective is convened as a council to strengthen the framework governing SOEs through, among other initiatives, the introduction of an overarching act governing SOEs, and the determination of an appropriate shareholder ownership model.

“Through the council, government intends to create alignment between all State-owned companies and to better define their respective mandates.

“The council will also work with the leadership of SOEs to develop a legal and regulatory environment that promotes innovation and agility, and enhances their competitiveness,” said the Presidency on Wednesday.

The Presidential SOE Council will undertake a process of rationalisation of SOEs to ensure entities serve strategic economic and developmental purposes.

Furthermore, the council will review business models, capital structure and sources of financing for SOEs and monitor and mitigate risks.

The Department of Public Enterprises (DPE) serves as Secretariat for the Council, as the department is the shareholder representative for government, with oversight responsibility for SOEs. – SAnews.gov.za

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