Eskom and Transnet could be listed on the JSE soon

South Africa’s government said it is closely collaborating with the Johannesburg Stock Exchange about listing the nation’s struggling state companies on the main bourse, with a view toward fostering investment.

“The process of ensuring that our state-owned entities are based on market orientation has already started,” Maropene Ramokgopa, minister in the Presidency responsible for planning, monitoring and evaluation, said after a meeting with the exchange Tuesday.

“We have spoken about the issue of the listing of our SOEs, and they are going to assist us in coming up with policies and frameworks that would allow us to do a better job.”

State-owned firms, many of which have faced governance issues and are in a precarious financial position, have frequently turned to the government for bailouts to help them stay afloat, but the National Treasury has hardened its stance when it comes to funding them. 

The government has repeatedly suggested it may privatize non-core entities, but the process has never gained traction.

Last year, it proposed amendments to its so-called public-private partnership laws, a measure aimed at encouraging private capital to invest in state infrastructure and projects. 

Finalization of the law, which is before parliament, “would allow us to then start saying that SOEs can actually be listed,” as opposed to them purely being owned and controlled by the government, Ramokgopa said.