President meets state firm chiefs after resignations

Ramaphosa requested meeting with more than 20 CEOs of key SOEs to hear their views on challenges, as well as opportunities.
President Cyril Ramaphosa says government is 'committed to work with the leadership of (SOEs) and stakeholders to urgently address the difficulties.' Picture: Siyabulela Duda

President Cyril Ramaphosa held talks on Wednesday with executives of key state companies, including power utility Eskom and South African Airways (SAA), to discuss challenges they face, his office said.

The meeting follows resignations of Eskom and SAA chief executives, moves that investors said could slow the pace of turnaround plans seen as critical to shoring up confidence in Africa’s most industrialised economy.

Read: There’s a CEO crisis in SA and no one is stepping up

The presidency said Ramaphosa requested the meeting with more than 20 chief executives of key state-owned companies to hear their views on challenges, as well as opportunities.

“This engagement has raised several critical areas that limit the ability of (state-owned companies) to drive growth and development. These range from inadequate capitalisation and poor governance to outdated legislation and political interference,” Ramaphosa said in a statement.

He said the government was “committed to work with the leadership of (the companies) and stakeholders to urgently address these difficulties.”

Ramaphosa’s growth drive is struggling to gain traction, and his plans are not helped by the dire financial situation of state firms that rely on government bailouts.

Fixing loss-making state firms such as Eskom and SAA is seen as vital to drawing in the investors that South Africa needs to finance its big budget and current account deficits.

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COMMENTS   3

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Bla Bla Bla.

Cyril only has ceremonial powers. Ace Malema decided for him what to say and what to do.

I am sure he called for all concerned to work together.

Yes, the president of the Republic of South Africa, the country’s first citizen, was allowed to speak to the CEOs of the bankrupt SOEs.

What came out of it was the usual and 100% guaranteed failure rate “SOE driven expansion of the economy”.

The Treasury is just as clueless and impotent.

In Treasury’s reaction tot the IMF’s last rites they were hopeful that Patel’s Competition Bill will stimulate the economy! More regulation.

We may as call in Sean Davison to administer the lethal dose.

Lip service. Ramaphosa is all talk and no play.

End of comments.

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