Par Margaret Chitiga-Mabugu, Helene Maisonnave, Martin Henseler & Ramos Emmanuel Mabugu
State-owned enterprises are companies in which government owns, directly or indirectly, more than 50% of the shares. Worldwide, states own 10% of the largest companies. In South Africa, state-owned enterprises play a significant role in the important sectors of mining, energy, communications, air and rail transport.
Often, state-owned enterprises receive advantageous treatment by the state. They may get discounted funding, government supported guarantees, direct subsidies and favourable regulatory treatment. They are also often exempted from antitrust enforcement and insolvency regulations.
Lastly, they are directly linked to the governmental budget through guarantees, bailouts, foreign investments and debts.
But state-owned enterprises are often vulnerable and prone to corruption. This can severely undermine their performance. In addition, governmental support can result in lower production efficiency and poor economic performance. This is because the protection they get often insulates them from competition.
Voir en ligne : Corruption in state-owned companies hurts low skilled workers the most