• SONA 2019: SOE’s take centre stage
Articles:

SONA 2019: SOE’s take centre stage

08 February 2019

Yugen Pillay , Audit Partner |

Inclusive approach on Eskom

It was extremely encouraging to hear that there is a firm plan of action to stabilise and turnaround Eskom. The President touched on the sensitive and ever increasing trend of some communities not paying for electricity consumption. Whilst it is known that Eskom in its current state possess a risk to the economy as a whole, it was pleasing to note that government acknowledges that an inclusive and citizen wide approach is needed to effectively turn Eskom around.  The unbundling of Eskom’s operations into 3 separate entities as well as the change in governance is welcomed and will give much needed comfort to local and global investors as well as credit ratings agencies.

Stabilising key state institutions

We are delighted to hear that Government has taken steps to stabilise key state institutions like the National Prosecuting Authority, the State Security Agency and the South African Police Service. These institutions form the backbone of the “rule of law” in our country and these steps will be a positive factor in combating crime and corruption. Whilst the local economy will benefit the most with the developments in the security cluster, both foreign investors and Governments will surely welcome the overhaul in this sector.     

Overall state of the nation address

We applaud the President on delivering an inclusive, forward looking, and uplifting state of the nation address. Critical issues like Eskom, state capture, health and education were addressed as well as plans to drive investment in the economy and alleviate unemployment. Most importantly, the citizens of South Africa were at the heart of the President’s address. All eyes will turn to the budget speech now to see how some of these initiatives will be unpacked and funded, but one things for sure, investors will definitely be looking to buy into South Africa Inc.

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