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The DA welcomes the announcement by the Minister of Public Enterprises, Pravin Gordhan, and Transnet Group CEO Portia Derby of their plans to secure private sector partners and investment into Transnet’s port network over the next five to ten years.

The DA has always called for the privatization of State-owned entities (SOEs) to reduce the State’s exposure and ensure steady economic maintenance and growth and believe this call for private investment into South Africa’s ports should be the first step in the privatization of SOEs, or at least private partnership in the SOE ownership model.

We are also of the belief that the mandate of port management should be devolved to the provinces to create a competitive environment between coastal cities and boost local economies. Any hopes of success for Transnet’s partnership with private investors will surely be dashed if it is managed by the national ANC government. They have proven that good governance is wholly outside their realm of expertise. This project has a much better chance of success in the hands of the provinces.

Minister Gordhan can’t have his cake and eat it too. He simply cannot dictate to the private sector while he solicits their investment but attempts to do it on his terms – to fix the failure of the State in SOEs that he has managed without delivering the necessary public goods sustainably and competitively. South Africa desperately needs SOEs out of the hands of corrupt cadres whose only expertise is to feed at the trough while the country’s economy is emaciated day by day.

Issued by DA