President Cyril Ramaphosa has initiated the long-awaited shift of state-owned enterprises (SOEs) from the Department of Public Enterprises. The president has reassigned major SOEs, such as Eskom and South African Airways (SAA), to their respective line ministries in the energy and transport sectors.
Eskom will now fall under the oversight of Minister of Electricity Kgosientsho Ramokgopa, while SAA and Transnet will be managed by Minister of Transport Barbara Creecy. Additionally, arms manufacturer Denel has been placed under the direction of Minister of Defence Angie Motshekga.
This move marks the beginning of the dissolution of the Department of Public Enterprises, a process that President Ramaphosa had pledged during his State of the Nation Address (SONA) earlier in 2024. Despite this, the department will continue to function temporarily as the transfer of human and financial resources takes place.
“The president has signed proclamations which, in terms of Section 97 of the Constitution of the Republic of South Africa of 1996, transfer that administration, powers, and functions entrusted by the specified legislation,” said presidency spokesperson Vincent Magwenya.
Magwenya also clarified that although the department has been stripped of its SOEs, it will remain operational during the transition until all resources have been appropriately reassigned
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