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Bookmark this page: www.oecd.org/daf/corporateaffairs/soe/africa
The OECD is supporting the development of policy initiatives to improve the corporate governance of State Owned Enterprises in selected African economies. The work program involves surveys of country practice and in-depth case studies of SOEs in selected African economies, benchmarking them against the OECD Guidelines on Corporate Governance of State-Owned Enterprises
The Southern African SOE Network
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OBJECTIVES:
- to raise awareness on the challenges and the benefits
- to evaluate the current frameworks and practices
- to influence policy making by sharing knowledge and experience
- to support viable and effective reforms adapted to the conditions in Southern African economies.
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Workshops:
The Network held its first meeting in Cape Town, South Africa on 6-7 May 2008 and convened again on 27-28 May 2009, in partnership with the Development Bank of Southern Africa (DBSA).
The meetings participants constitute a peer group that can develop linkages to promote reforms in the sub-region and to develop regional-specific responses to the policy challenges highlighted in the OECD Guidelines. The Network also includes relevant experts from other countries, particularly from the OECD Working Group on Privatisation and Corporate Governance of State-owned Assets.
Outcome of the Network
The Network will develop a sub-regional Policy Paper, to set out the key priorities for corporate governance reform of SOEs based in the sub-region. This Policy Paper will be the product of the Network’s deliberations and will be a consensus document.
Why SOEs?
In southern Africa, the role of state-owned enterprises is of significant importance across most jurisdictions. SOEs in these economies are active in key infrastructure and service industries including water, energy, financial services and transportation. These sectors are of critical importance to the well being of all citizens and to the competitiveness of upstream and downstream private sector companies and industries. SOEs are also involved in dominant industrial sectors such as mining and textiles that represent the largest employers.
How improving corporate governance in SOEs can help?
Enhancing the performance of the SOE sector via better governance practices has great potential to improve economic and social outcomes in southern Africa. Foremost, gains in SOE performance will positively impact citizens, and the economy more generally, by facilitating goods and services in key sectors to be delivered more effectively. Conversely, the continued under-performance of SOEs results in poor returns on invested Government capital (lower dividend streams), ongoing stress on government budgets (via continuing subsidies), and higher costs for private sector businesses which rely on SOEs for their inputs.
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