Ramaphosa: New Commission to Oversee State-Owned Enterprises SA

• South Africa plans to establish a new commission, chaired by President Cyril Ramaphosa, to coordinate the work of state-owned enterprises.
• This initiative replaces earlier proposals for a holding company and a management company, the latter of which was withdrawn after legislative hurdles.
• The commission's mandate includes reviewing national strategy, strengthening governance, improving monitoring, and facilitating rationalization and restructuring of state firms.
• It will be a hybrid oversight model, drawing on structures from China and Norway, and can be established quickly via presidential regulations.
• The Department of Planning, Monitoring and Evaluation is currently developing interim reform proposals, including appointment guidelines and a rationalization framework for SOEs.

The proposed commission, which can be established rapidly through presidential regulations, aims to centralize oversight and address long-standing issues of mismanagement and inefficiency within South Africa's state-owned enterprise sector.

South Africa is moving forward with plans to establish a new commission, to be chaired by President Cyril Ramaphosa, with the mandate of coordinating the operations of the nation's state-owned enterprises (SOEs). This development signals a shift from previous strategies, specifically shelving earlier proposals to place these entities under the control of a dedicated holding company. The primary objective of this high-level panel is to review the existing national strategy that defines the role of these state firms and to ensure that government ownership is exercised in a consistent and professional manner.

Minister in the Presidency, Maropene Ramokgopa, confirmed that the commission will also be tasked with standardizing and strengthening governance practices across the SOE landscape. Furthermore, it aims to enhance monitoring mechanisms and facilitate the rationalization and restructuring of these entities. This comprehensive approach is designed to eliminate duplication of efforts and significantly improve overall efficiency within the state-owned sector.

The decision to form a presidential commission comes against a backdrop of persistent challenges faced by South Africa's numerous state entities, which include major players like the power utility Eskom, logistics giant Transnet, and the South African National Roads Agency (SANRAL). Many of these organizations have been plagued by mismanagement and severe financial difficulties, often necessitating reliance on government funding for their survival, which has intensified calls for more robust oversight.

Previously, some of the largest state firms fell under the purview of the Department of Public Enterprises (DPE). However, the DPE was disbanded in March 2025, with control subsequently transferred to the relevant line ministries. An earlier attempt to centralize oversight involved a draft law presented to parliament in 2024, which proposed the creation of a management company to oversee all state firms. This legislation, however, was not processed and was ultimately withdrawn last month. Minister Ramokgopa explained that "circumstances have changed considerably" since the bill's initial drafting, and following stakeholder engagements and consultations with political parties, it became clear that the bill could not simply be revised and needed to be reconsidered by the cabinet.

The proposed commission, which can be established rapidly through presidential regulations, aims to centralize oversight and address long-standing issues of mismanagement and inefficiency within South Africa's state-owned enterprise sector. This approach bypasses the lengthy process typically required for creating new legislation. The structure of this new panel is envisioned as a hybrid model, drawing inspiration from the oversight frameworks employed by countries such as China and Norway for their respective state entities.

In the interim period, while the commission is being formalized, the Department of Planning, Monitoring and Evaluation (DPME) is actively engaged in developing reform proposals for state companies. These proposals encompass crucial areas such as guidelines for appointments and remuneration, alongside a comprehensive framework for the rationalization of SOEs. Minister Ramokgopa also noted that while the commission offers an immediate solution, the option to establish a dedicated management company remains open for consideration at a later stage, should it prove necessary.

This development signals significant upcoming changes to governance, compliance, and operational frameworks for South African state-owned enterprises. Legal and compliance professionals advising SOEs or private entities interacting with them should monitor the commission's directives for new regulatory requirements, procurement guidelines, and potential restructuring impacts.

Source: Reporting based on recent statements from the Presidency.