Thoughts on South African and international politics and culture

Monday, November 01, 2004

Reconsidering privatisation?
The announcement that SAA lost R15 billion in the past two years has shocked a jittery cabinet and encouraged them to seek a revision of all 19 of SA's state-owned enterprises. Could this be the final straw in pushing Government into privatisation? Probably not.

The government is utilising the SOE's in a plan to "increase the level of fixed investment in the economy from 16% of the size of the economy, as measured by gross domestic product (GDP), to 25% by 2014." The plan aims to reduce the cost of doing business in South Africa and involved the use of SOE's to improve infrastructure.