State Owned Enterprises In South Africa: A Pinocchio Paradox

Priviledge Cheteni
University of Fort Hare

Yohane Khamfula
North West University

 

Abstract

The state plays an important role in the South African economy. SOEs viability is projected to be a pivotal part in leading the transformation agenda by a number of departments because they are spearheading economic development. Nevertheless, the rapid ascendency of SOEs in driving economic growth has been with negative consequences for the South African economy, with a number of them being viewed as driving nepotism, corruption and non-aligned state agendas. This has led to conflicts with market driven economic development of the South African economy, and hindering competition between the state-owned enterprises and private-owned enterprises. Download the full article