R155 billion in state assets set for centralised management under new SOE
President Cyril Ramaphosa has revealed plans to create a new state-owned company tasked with managing the government’s R155 billion property portfolio.
The president made the announcement during his State of the Nation Address on Thursday, saying the new company will centralise the oversight of state-owned properties to improve efficiency, maintenance, and strategic use.
“This year, we will begin the work to establish a professional State Property Company to transform the 88,000 buildings and 5 million hectares of land owned by the state into professionally managed engines of growth and development,” Ramaphosa said.
The president added that the new company will not only manage existing state assets but also unlock value from underutilised properties, support economic development, and generate revenue to fund public services.
“We will continue to improve the governance and performance of state‑owned enterprises… we will continue to work in a phased manner towards a centralised model for managing our SOE portfolio so that we can set standards, improve governance and ensure financial sustainability.”
The new state-owned company will add to an already extensive network of more than 120 government-run entities, most of which have faced challenges with profitability and efficiency.
The president also said that the government will look at high-speed rail across key corridors, including routes from Johannesburg to Musina and from eThekwini to Johannesburg.
“This project will introduce a new era of long-distance rail travel in South Africa and support economic growth along these routes,” Ramaphosa said, adding that the government is moving from early planning to formal procurement after receiving strong interest from the private sector.
mthobisi.nozulela@iol.co.za
IOL Business