President Cyril Ramaphosa wants to take drastic measures to save the South African economy. After the bankruptcy of several companies and state-owned companies, the President of the Republic decided to stop bleeding.
Ramaphosa said in its weekly open letter that any additional financial support from the government will be subject to strict conditions to promote sustainability and self-sufficiency.
He added that some of the key Crown corporations will be retained, but others will be open to co-ownership with strategic partners that can help the company raise capital, increase efficiency and improve technology. The South African president also mentioned that his government would take measures to fight against corruption.
The immediate challenge is to stop the capture of the state and tackle the corruption that paralyzed a number of our public enterprises
« The immediate challenge is to end the capture of the state and tackle the corruption that paralyzed a number of our public enterprises, » added the president, one of the main lines of governance, if not the main thing since coming to power in 2018 is to revive a crippling economy caused by the crisis in large state-owned enterprises.
The South Africa Airline, for example, has reported losses since 2012, with high operating costs, old technologies and aircraft, high numbers, high taxes, political interference and corruption scandals.
Eskom, the state electricity utility, has to rely on state aid to continue its activities, while the government-controlled national television channel, SABC, is also one of the companies struggling to survive.