SOE commercial restructuring non-negotiable
As government moves closer to the promulgation of new legislation for public enterprises, it wants the private sector to constantly engage.
NDAMA NAKASHOLE
The reform of public enterprises will be accelerated as soon as the new legislation has been promulgated, public enterprises minister Leon Jooste said on Wednesday.
Speaking at the annual general meeting of the Association of Service Station Owners (ASSO) outside Windhoek, Jooste said the government foresees a significant improvement in the medium term once the new public enterprises legislation is promulgated.
This improvement is expected to lead to a decline in government subsidies and an increase in profitability.
“Some of our larger public enterprises will require complete commercial restructuring, which is complex and time consuming but a non-negotiable necessity,” he said.
According to him, the important factors are to identify exactly what space public enterprises should be occupying, and what should be occupied by the private sector.
Jooste said there is also need to evaluate areas where the public enterprises may be competing with the private sector and whether this is in the best interest of the country.
The Public Enterprises Act has been certified by the attorney-general and will be tabled when parliament session resumes.
Compatibility
At the same occasion, Jooste also discussed the importance of the relationship between the government and the private sector.
He said it is the role of the government to create the optimum policy environment for the private sector to flourish in. When the private sector flourishes, jobs are created and the economy grows further.
However, accurate policy formulation can only take place when government and the private sector engage and build relationships, Jooste said. “I encourage the organised private sector through the representative bodies like the ASSO to constantly engage the relevant government ministries to share sector-specific challenges and constraints,” he said. That would allow the ministries to identify suitable remedial action as and when required.
The minister said this in turn should lead to an improvement of the commercial environment for the particular sector.
Facts
Jooste, who also gave a brief overview of the economy, highlighted that the latest projections and data indicate a gradual recovery of 1.2% for 2018, growing to around 3.2% by 2020/21.
“SACU revenue has reduced by 11% this year and will reduce by a further 7% next year,” he pointed out.
Jooste said that state revenue is projected to grow by an average of about 4% over the next two years, while fiscal consolidation has allowed the treasury to align expenditure to revenue. “Indications are that the economy is on a slow recovery path, stimulating employment and growth, while the construction sub-sector, after painful contraction, is rebounding to a projected 23% recovery,” said the minister.
The reform of public enterprises will be accelerated as soon as the new legislation has been promulgated, public enterprises minister Leon Jooste said on Wednesday.
Speaking at the annual general meeting of the Association of Service Station Owners (ASSO) outside Windhoek, Jooste said the government foresees a significant improvement in the medium term once the new public enterprises legislation is promulgated.
This improvement is expected to lead to a decline in government subsidies and an increase in profitability.
“Some of our larger public enterprises will require complete commercial restructuring, which is complex and time consuming but a non-negotiable necessity,” he said.
According to him, the important factors are to identify exactly what space public enterprises should be occupying, and what should be occupied by the private sector.
Jooste said there is also need to evaluate areas where the public enterprises may be competing with the private sector and whether this is in the best interest of the country.
The Public Enterprises Act has been certified by the attorney-general and will be tabled when parliament session resumes.
Compatibility
At the same occasion, Jooste also discussed the importance of the relationship between the government and the private sector.
He said it is the role of the government to create the optimum policy environment for the private sector to flourish in. When the private sector flourishes, jobs are created and the economy grows further.
However, accurate policy formulation can only take place when government and the private sector engage and build relationships, Jooste said. “I encourage the organised private sector through the representative bodies like the ASSO to constantly engage the relevant government ministries to share sector-specific challenges and constraints,” he said. That would allow the ministries to identify suitable remedial action as and when required.
The minister said this in turn should lead to an improvement of the commercial environment for the particular sector.
Facts
Jooste, who also gave a brief overview of the economy, highlighted that the latest projections and data indicate a gradual recovery of 1.2% for 2018, growing to around 3.2% by 2020/21.
“SACU revenue has reduced by 11% this year and will reduce by a further 7% next year,” he pointed out.
Jooste said that state revenue is projected to grow by an average of about 4% over the next two years, while fiscal consolidation has allowed the treasury to align expenditure to revenue. “Indications are that the economy is on a slow recovery path, stimulating employment and growth, while the construction sub-sector, after painful contraction, is rebounding to a projected 23% recovery,” said the minister.
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