South Africa is set to establish a presidential commission, led by President Cyril Ramaphosa, aimed at overseeing the country’s state-owned enterprises (SOEs). The announcement was made on October 7, 2026, following the abandonment of previous plans to consolidate these entities under a holding company.
Gwen Ramokgopa, a minister in the Presidency, indicated that the new commission will focus on reviewing a national strategy that defines the role of state-owned companies. The objective is to enhance government ownership practices in a more coherent and professional manner. She noted that the commission is expected to standardize governance practices, improve monitoring, and facilitate the rationalization and restructuring of these entities to eliminate duplication and enhance efficiency.
South Africa has a range of state-owned enterprises, including the power utility Eskom, the logistics company Transnet, and the South African National Roads Agency, all of which have faced challenges such as financial difficulties and mismanagement. These issues have resulted in a reliance on government funding and increased demands for stricter oversight.
Historically, several large state firms operated under the Department of Public Enterprises, which was disbanded in March 2025. Control of these entities has since been transferred to relevant line ministries. A draft proposal introduced in 2024 aimed to create a management company for all state firms. However, this legislation was not processed and was officially withdrawn last month.
Ramokgopa explained that substantial changes in circumstances since the initial drafting of the bill necessitated its return to the cabinet instead of a simple rewrite. The new commission, modeled after structures from China and Norway, is expected to be established promptly.
In the interim, the Department of Planning, Monitoring and Evaluation is developing reform proposals for state companies, which include guidelines for appointments and remuneration, along with a framework for rationalization. Ramokgopa highlighted that the South African constitution permits the president to chair such a commission using existing regulations, potentially allowing for the later establishment of a management company if deemed necessary.
The commission’s creation marks a significant shift in South Africa’s approach to managing state-owned enterprises, which have been under scrutiny for their operational and financial challenges.
