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The plans to stimulate "inclusive growth" in the continent's
biggest economy appear to represent an ideological shift by the
African National Congress (ANC), whose political alliance with
the unions has tended to make privatization a dirty word.
The continent's most sophisticated economy entered recession for
the first time since 2009 in the first quarter and is also
struggling with high unemployment and credit ratings downgrades.
Gigaba said he would continue with the disposal of non-core
state assets and roll out a "private sector participation
framework" by March 2018.
"All of these items that we have announced... they constitute an
important intervention to restore confidence and demonstrate
action, and outline an action plan that we as government can be
responsible for," Gigaba said.
The government would also reduce the issuance of guarantees to
state companies, especially those extended for operational
purposes, he said.
Many of South Africa's 300-odd state-owned companies, which
include South African Airways, are a drain on the government's
purse. Ratings agencies have singled out some as threat to the
country's investment grade rating.
(Reporting by Olivia Kumwenda-Mtambo and Mfuneko Toyana)
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