The ANC is yet to discuss whether it will forge ahead with the National State Enterprises Bill that would see state-owned entities operating under one company, its secretary-general Fikile Mbalula says.
Mbalula was speaking on the sidelines of a national working committee meeting with Gauteng provincial leaders on Monday.
“There will be a discussion in the ANC about a state company that is going to be created [but] that does not mean that line function ministries will change in terms of what has been assigned to them and what belongs to them,” he said.
Mbalula's statement signals that the ANC and the government are not in unison over the future of these entities.
The bill was introduced to the ANC by former minister of public enterprises Pravin Gordhan last year, months before Ramaphosa announced that he was dissolving the ministry in line with an ANC resolution.
The bill states that the president will be the sole representative of the holding company but may transfer any power or function referred to in the legislation to another member of the cabinet. The holding company will act through its board, appointed by the president.
It's also understood that only profitable state-owned entities will be transferred to the holding company. Others will have to be restructured or consolidated.
The Sunday Times recently reported that while Ramaphosa’s administration seems determined to forge ahead with the formation of the State-Owned Holding Company (HoldCo), in line with the Zondo commission recommendations, some in his party are still lobbying against the move, arguing that the control of SOEs should rest with line departments as per a resolution adopted at the party’s national conference in 2022.
Ramaphosa signed a proclamation transferring:
- Alexkor to the minister of mineral resources and energy Gwede Mantashe;
- Denel to the minister of defence Angie Motshekga;
- Eskom to the minister of electricity and energy Kgosientsho Ramokgopa;
- Safcol to the minister of forestry, fisheries and environment Dion George; and
- SAA, Transnet and South African Express to transport minister Barbara Creecy.
While it is widely believed that the move is temporary, some ANC leaders said there is no ANC resolution to move the SOEs to a holding company.
We must discuss what we mean by a state-owned company ... within the ANC and the broader tripartite alliance
— Fikile Mbalula, ANC secretary-general
Those in support of the bill say that Ramaphosa is working towards preventing SOEs becoming a feeding trough for ANC cadres, while some cautioned that Ramaphosa could be opening another can of worms by centralising powers in the president's office.
Mbalula said the HoldCo was a model practised worldwide which would be used to enhance the creation of a sovereign wealth fund much like in advanced democracies.
“South Africa is venturing into that. We have not had a full decision in the ANC with a view that is firm ... We have taken a view as the conference — and it is implemented — to do away with the public enterprise department as a ministry and we have a conference resolution that says we must take all these state companies to line ministries.
“We must discuss what we mean by a state-owned company ... within the ANC and the broader tripartite alliance,” he said.
The sovereign wealth fund was introduced by the ANC in 2017. The EFF would then adopt this in their own strategic growth policy, explaining that it was to widen the non-tax revenue streams of the state and save wealth for future generations. Then EFF deputy president Floyd Shivambu described the fund as one of the most dynamic, pragmatic solutions to uplift South Africa. A similar fund has been created in Singapore, Norway and the United Arab Emirates.
In 2020 then finance minister Tito Mboweni said a wealth fund was an important long-term tool for saving and investment for future generations. He said it could also contribute to strengthening the fiscal framework.
“We must learn to save during the good times, and a fund can play a role as a countercyclical fiscal tool. Today we announce the wealth fund with a target capital of about R30bn, which converts to about $2bn,” he said at the time.
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