What is the role of SOEs?

SOEs play a vital role in terms of the direct services they provide. The population’s access to water, electricity, sanitation and transportation is almost entirely dependent on the state, operating through corporate vehicles. In addition, SOEs are among the main sources of urban employment.

What is the meaning of state owned enterprises?

A state-owned enterprise (SOE) is a legal entity that is created by a government in order to partake in commercial activities on the government’s behalf. It can be either wholly or partially owned by a government and is typically earmarked to participate in specific commercial activities.

How many SOEs are there in South Africa?

There are profiles of 24 public entities which include major SOEs such as Transnet, Eskom, South African Airways and Denel, and other entities under state ownership and control such as the Development Bank of Southern Africa and Independent Development Trust.

What are the benefits of state-owned enterprises?

Advantages of a state-owned enterprise:

  • SOEs receive financial support from government.
  • SOEs are known for receiving access to favorable policies such as: Tax breaks on certain products. Lower interest rates on loans from state-owned banks.
  • Access to a large and stable potential customer base.

How are state owned enterprises run?

Under the SOE Guidelines, SOEs are ultimately owned by the general public and the government agencies who exercise the ownership rights are answerable to the general public.

What are the benefits of state owned enterprises?

Is SARS state owned?

The South African Revenue (SARS) is established in terms of the South African Revenue Service Act, 34 of 1997 (SARS Act) as an organ of state within the public administration, but as an institution outside the public service.

What is South Africa’s largest state owned enterprise?


Name Industry Ownership type
Airports Company South Africa (ACSA) Airport management 74.6% state owned
Alexkor Mining Fully state owned
Armscor (South Africa) Arms procurement Fully state owned
Broadband Infraco Telecommunications Fully state owned

Is Alibaba a state-owned enterprise?

Alibaba became one of the most valuable tech companies in the world after raising $25 billion from its U.S. IPO. It is also one of the most valuable Chinese public companies, ranking among some of the country’s state-owned enterprises.

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