Maimane calls for privatisation of ailing SOEs

September 10, 2018 2:19 pm Published by Leave your thoughts

JOHANNESBURG – Democratic Alliance (DA) leader Mmusi Maimane has called for the privatisation of ailing state-owned entities (SOEs), saying doing so would help the South African economy grow at a reasonable level.

He says the country cannot tax itself to prosperity and that the current recession should push government to get rid of parastatals that are running at a loss.

Maimane also insists that Eskom and President Cyril Ramaphosa should reveal the terms and conditions of China’s R33 billion loan to South Africa.

He says the plans he’s outlined on Monday would help the struggling economy.

“Privatising some of these SOEs will introduce for competition in key industries like power production and transport. We must immediately pay all outstanding invoices owed to small businesses from the national and provincial governments. We must cut the Cabinet to around 15 ministries.”

Maimane says the ongoing bailouts at Eskom and South African Airways are not helping the country.

He says there is also a fundamental need for policy certainty which Ramaphosa recently conceded was a problem for investors.

Maimane also likened the Eskom-China loan to the secrecy around the nuclear deal during former President Jacob Zuma’s tenure, saying it has the potential to plunge the country into enormous debt.

(Edited by Thapelo Lekabe)

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