This year’s conference, organised by Fourth Estate-owned Enterprises, focuses on the theme of aligning SOEs with private sector efforts to bolster economic development on the continent.
It serves as a platform for policymakers, business leaders, and civil society representatives to collaborate on improving SOE management and governance.
Ross Harvey, Director of Research and Programmes at Good Governance Africa, highlighted the importance of the conference as a forum for engaging stakeholders to discuss the future of SOEs amid a shifting global landscape.
“State-owned enterprises have the potential to drive broad-based development,” Harvey stated. “The purpose of this conference is to bring together those who can make a difference, facilitating collaboration and reducing duplicated efforts.”
One of the primary topics of discussion is the need for robust governance within SOEs to ensure their effective operation. Governance issues have long plagued South Africa’s SOEs, with challenges ranging from financial mismanagement to a lack of accountability, undermining their intended public benefit.
Harvey emphasised that addressing governance is essential, noting that poorly governed SOEs can quickly become financial liabilities rather than assets for economic growth.
This year’s conference will examine the recommendations made by South Africa’s Presidential Review Committee and a national study on SOEs. “It’s critical to assess these recommendations and determine if they’re practical and impactful,” Harvey said.
Additionally, the conference promotes dialogue between African nations on SOE reforms, allowing participants to learn from one another’s experiences and foster cross-border collaboration on economic development goals.
When questioned about the practical impact of the conference, Harvey clarified that its purpose is not to implement reforms directly but to foster a network of communication and collaboration among stakeholders. A report produced from the conference has already been received by international bodies like the World Bank and the International Monetary Fund, indicating the event’s influence on a global scale.
“Engaging entities like the IMF and World Bank is crucial, as they monitor risks associated with SOEs, such as underperforming utilities like Eskom,” he added.
The issue of governance emerged as a critical focus at the conference. Harvey outlined a common governance flaw in South African SOEs: the lack of separation between the government as the sole shareholder and the management of these enterprises.
Often, government ministers responsible for SOEs have undue influence over board appointments, creating conflicts of interest and undermining the autonomy of both the board and the SOE’s executive team.
Harvey argued that reforming these governance structures is essential to avoid conflicts that impede SOE efficiency and accountability.
Further complicating matters is the frequent appointment of individuals lacking the necessary skills for leadership roles within SOEs. Political influence over appointments has often prioritised loyalty over expertise, resulting in ineffective management.
Harvey stressed that a critical governance reform would ensure that board appointments represent diverse interests rather than solely political ones, enabling the selection of skilled, accountable executives.
“Professionalising SOEs and appointing skilled individuals is vital, but it’s only achievable if governance structures support it,” he concluded.
As the conference continues, delegates are encouraged to contribute to discussions on the future role of SOEs across Africa, promoting best practices in governance and professionalisation to maximise their impact on sustainable development.
--ChannelAfrica--
