Politicians should not run ahead of themselves and expect the wholesale or partial privatisation of state-owned enterprises (SOEs), Deputy President Cyril Ramaphosa said in parliament on Wednesday.<\/p>\n
Responding to oral questions from MPs, Ramaphosa said there are currently around 700 SOEs \u2013 some of them key to South Africa\u2019s developmental mandate and others less so.<\/p>\n
The inter-ministerial committee tasked with reviewing all the SOEs will come up with a list of which ones are relevant and which not.<\/p>\n
“As of now we will put the horse before the cart to decide which ones should be retained,\u201d Ramaphosa said.<\/p>\n
“We\u2019ll be looking at all of them in terms of their performance and profitability and only thereafter we\u2019ll have clearer answers.”<\/p>\n
Ramaphosa stressed that the management and governance at SOEs will also receive attention, as well as whether private sector investment and foreign direct investment will be needed as capital injections.<\/p>\n
Minimum wage<\/strong><\/p>\n As for a national minimum wage, Ramaphosa said it could go a long way to provide a much-needed injection into South Africa\u2019s economy.<\/p>\n The issue of a minimum wage is currently deliberated in National Economic Development and Labour Council (Nedlac) and he said South Africa is progressing well with its implementation, compared to other countries.<\/p>\n “It took much longer in Germany and in Brazil it took eleven years. We\u2019re doing it in a period of 18 months and we\u2019re working frantically to reach agreements,” Ramaphosa said.<\/p>\n DA MP Ian Ollis asked the deputy president in a follow-up question if it\u2019s wise to compare South Africa with other countries.<\/p>\n “Brazil and Germany implemented a national minimum wage when their economies were thriving. The same can\u2019t be said for our economy. We need to revise it downward; government can simply not implement it in a time where small knocks can have a devastating effect on the economy.”<\/p>\n Ramaphosa disagreed. “Brazil implemented a national minimum wage when their inequality was the worst in the world. A minimum wage helped them to grow their economy.”<\/p>\n He added that the parties who are deliberating at which level a national minimum wage should be set are \u201cacutely aware\u201d of South Africa\u2019s economic circumstances.<\/p>\n “Today our level of inequality is the worst in the world. But this could be turned around and a minimum wage could lead to the injection of growth in our economy. If people have more money in their pockets they become better consumers.<\/p>\n “This could fuel the manufacturing and demand for goods and services. We should not only look at a minimum wage from negative perspective,” Ramaphosa concluded.<\/p>\n News24<\/a><\/p>\n Zuma releases a new 21 point guide for state owned companies<\/a><\/strong><\/p>\n Are SA state-owned companies making a profit?<\/a><\/strong><\/p>\nMore on SOEs<\/h3>\n