Fin24 reports that government wants to create a new investment company that will manage its stakes in SA’s state-owned enterprises (SOEs) such as Eskom, Denel and Transnet.

The company could also, eventually, take shares in private sector businesses. Department of Public Enterprises (DPE) director-general Kgathatso Tlhakudi told a parliamentary committee last week that the process was underway to establish the new company. The idea is for the company to be an active investor and shareholder in SOEs with the aim of delivering sustainable value over the long-term. This may include selling stakes in SOEs, and finding "sustainable funding models". The company will be 100% owned by the SA government and will report directly to the Presidency. The institution – called Asset Management State-owned Company in the government presentation – is likely to retain its holdings in certain existing SOEs, but will also gradually enter new markets or new industries, including outside SA. At first, however, it will launch a process to identify the best ownership model, as well as sustainable funding models, for the different SOEs – and group the different companies into various sectors. By 2030, SA needs to have a set of "efficient, financially sound and well-governed SOEs that address the country's developmental objectives in areas where the executive arm of government or private enterprise are unable to do so effectively," said Tlhakudi.

• Read the full original of the report in the above regard by Carin Smith at Fin24 (subscriber access only)

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