GOVERNMENT CONSIDERS PRIVATISATION & MORE TO PULL SA OUT OF RECESSION
Finance Minister Malusi Gigaba shed light on government’s reform action plans to pull the South African economy out of recession at a meeting of various stakeholders in the week. The interventions will form part of (and be unpacked at) government’s 2017 Medium Term Budget and 2018 National Budget Speeches respectively.
While encouraging South Africans to work together and restore growth, the Minister urged that we brace ourselves for tough economic times ahead. A key area to be addressed by government includes state-owned enterprises (SOEs), with the sale of non-core assets and partial / full privatisation of SOEs (including SAA) being touted as a way in the right direction.
Government says it has a dedicated action plan for the national carrier. These include:
- Finalizing a CEO appointment by July 2017;
- Negotiate with lenders to extend debt to a longer-term by October 2017;
- Finalise and implement a 5 year Turnaround plan by December 2019
Minister Gigaba also announced that he will engage other government departments on the Private Sector Participation (PSP) Framework this month, with the aim of deciding whether sector specific PSP frameworks are needed. An announcement on this is scheduled for October 2017. Click here to read the Finance Minister’s speech in full.
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