South Africa: Mortal Combat - Fixing the SOEs, Take 238

President Cyril Ramaphosa with Finance Minister Tito Mboweni ahead of the Budget 2019 Speech.

To fix South Africa's SOEs is a difficult and politically dangerous move. Tito Mboweni's Budget speech shows that there are strong elements in the ANC and government who want to make very real changes to the way that state-owned entities are run. That will not be easy, though. Or soon.

In some ways, Tito Mboweni talked tough, through what he said, through what has been announced in the Budget, and through what has not been said. There are those who oppose change, who clearly benefit from the current situation that got them into their position in the first place. The real test for Team Ramaphosa will be in effecting a meaningful and long-lasting change in the way that these entities are treated, and run.

For his part, Mboweni has never one to run away from a right. In the past, there have been moments when it looked like he almost relished a good scrap.

It might well have been in that fighting spirit that he said on Wednesday:

"The SOEs pose very serious risks to the fiscal framework. Funding requests from SAA, SABC, Denel, Eskom and other financially challenged state-owned enterprises have increased, with several requesting state support just to...

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 800 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.