Johannesburg – Privatisation may be the only viable option for struggling state-owned enterprises (SOEs), according to the South African Institute of Race Relations (IRR).
A paper, Privatisation or bust, by the IRR proposes the privatisation of SOEs. The paper was authored by research fellow, John Kane-Berman. If privatisation is properly executed, then it can be beneficial for South Africa.
“The alternative to privatisation is continued poor governance, crony capitalism, never-ending rising costs in both tax payers and consumers, and a continued delay in meeting the country’s need to upgrade and expand its economic infrastructure,” according to the IRR.