Africa is the future of our state owned enterprises.

As president Cyril Ramaphosa ascends to the seat of chairpersonship of the African Union (AU) he needs to ensure that his contribution to the African agenda leaves a long-lasting legacy. In this instance, he should have a developmental agenda for the continent using South Africa’s ailing state owned enterprises. The signing of the African Free Trade Agreement presents opportunities not only to South Africa’s private sector but equally to the public sector through its state owned enterprises.

The president remains conflicted and ill-advised by a minister of public enterprises who has repeatedly failed to rescue any of the ailing state owned enterprises. On the other hand the president’s advisors fail to mold his presidency into one that has a single vision that pursues its objectives without fear. If I had the ear of the president I would tell him not to run away from himself. Cyril Ramaphosa is a successful business man. The best thing that he can do for South Africa’s failing economy is to get state owned enterprises working and succeeding which will create some of the much needed jobs for our economy.

To be able to do these legislative reforms are needed especially on how boards and executive management of state owned enterprises are appointed. China should be a reference point in this regard as Chinese state owned enterprises own several businesses as private businesses instead of public enterprises. In the January 8 statement the president spoke of this reform where a state holding company would own all the state owned companies as the case of Singapore. After establishing this company the president should bring back his principle social partnership by having people with expertise from government, labour, business and civil society on the board of the holding company. This should lead to the important dissolution of the ministry of Public Enterprises The further away from politicians state owned enterprises are the better for our country and economy.

Once the holding company is established it must appointment of the best South Africans in its management. Those appointed to lead state own enterprises should have the necessary qualifications, experience and expertise to do their jobs. Meritocracy must reign supreme and mediocrity must be punished. The process of appointment must be taken away from parliament and ministries but be made public and independent through ad-hoc independent panels that comprise of experts in human resources and experts in the fields where the enterprise does business. Just as in China appointment should be done through the principle of talent and morality with morality coming before talent. This means that those accused of corruption must take the David Mabuza approach and seek to clear their names before even applying for a job in the state owned enterprises. Those that fail in executing their duties must be fired without hesitation as state owned enterprises belong to the people not individuals.

Expansion into Africa is not only essential but it is equally imperative as the high migration into South Africa has taught us that what happens in other parts of Africa will also affect South Africa. However the expansion into Africa should not follow a type of re-colonialisation . South African state owned enterprises must not bring their own labour in African countries where unemployment is rife. Nor should they do business by any means necessary even if it means through corruption and sponsoring warlords. Equally South Africa should not employ the strategy of African nationals doing business in South Africa where Somalians, Ethiopians, Nigerians and many others have the sole objective of ensuring that South African owned businesses in township die due to the cooperation among themselves which takes prices low. This one of the issues that stands at the centre of xenophobic attacks on foreign nations, they seek to monopolize the township economies and rarely cooperate with South African business in their areas.

A prime example of how this could be done is by acting on the proposal of Vuyani Jarana for South African Airways to merge operations with Ethiopian Airlines. The reality is that SAA needs a strategic equity partner and most importantly needs access to East African airways market which is busier than the market in Southern Africa. Transnet has taken significant steps with the establishment of Transnet International Holdings which has manufactured the TransAfrica Locomotive which is the first ever locomotive designed by Africans, made by Africans specifically for Africa. Transport infrastructure will play an important part in the success of the African Free Trade Agreement in terms ensuring that goods, services and people reach different parts of the continent.

According to a World Bank 2017 report only 44.6% of the population in Sub-Saharan Africa have access to electricity. With the current talk about the fourth industrial revolution, Africa cannot fully join the conversion as many of the countries are still struggling with the second industrial revolution. This is where Eskom comes in as Africa’s biggest electricity producer. Eskom must expand into Africa through collaboration with governments and local companies in countries that have produce coal and those that are suitable for renewable energy. Through this as well as proper corporate governance, consequence management, eradication of unprofitable evergreen contracts, capacitation of its workforce, permanent maintenance plan and  introduction of alternative energy sources Eskom can go from begging for bailouts to contributing to the fiscal in a significant manner.

The Department of Communications needs to rethink the current process migration to Digital Terrestrial Television. Since this is a global process which will include all African countries the department should partner with E-media Holdings which is far ahead in terms of progress with its Open View initiative. It does not make sense how the two biggest free to air companies being the SABC and E-media holdings have not made an partnership with the vision of challenging Multi-Choice’s DSTV’s domination in South Africa and Africa. The South African government should fund the SABC in this initiative and make terms for them to expand into Africa through collaboration with other African broadcasters and media companies. This will foster social cohesion in Africa and the telling of African stories from an African perspective.

Other important sectors equally need to be invested in and expanded by the government as well as strategic partners. A state owned pharmaceutical company that assist Africa with access to medicine should be looked into. The financial sector also will need attention as I do not understand who has insured the 17 million South Africans that are on social grants. The Post Office equally needs to be given a banking license so that the Public Investment Cooperation can invest in it so that the working class can have a bank that is owned by them and their government.

Destiny has put a businessman at the helm of South Africa and Africa at the beginning of this new decade for him to get African business working. South Africa has the potential to contribute significantly to the rise of the African continent. We must partner up with countries like Rwanda, Nigeria, Egypt, Ethiopia, Kenya etc. to ensure that we work together in getting Africa working. The reality is that no country has developed without decisive state intervention. China has turned the free market on its head with state owned enterprises building the second biggest economy in the world. The time has come for South Africa to take the lead. We must defeat corruption and bring in prosperity not only for South Africa but the entire African continent.

Mogale Matsose II holds a honours in political science and international relations from the North West University (NWU)