SOUTH Africa’s government should halt bailouts for state entities and review its ownership of more than 700 companies, according to a draft economic policy document compiled by the ruling party.
The current model for state firms “is dying,” the African National Congress, which is due to hold its national policy conference later this year, said in the document seen by Bloomberg. “The era of bail outs for state-owned enterprises is over.”
The call for an overhaul in the government’s approach comes after it sank billions of dollars into utilities such as power producer Eskom Holdings SOC Ltd. and the national airline with little return. Workers at the state arms maker haven’t been paid for 18 months and the state broadcaster, post office and oil company plan to cut jobs, the ANC said.
Eskom and other state companies were the prime targets of a looting spree, known locally as state capture,
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