South Africa Presidency Withdraws SOE Listing Bill Amid Political Opposition
What happened
The Presidency quietly withdrew the National State Enterprises Bill, which originally proposed listing state-owned enterprises (SOEs) such as Eskom on the JSE. This withdrawal followed stern opposition from the DA and other government of national unity partners, who feared the bill would not garner enough votes in parliament. The original model intended to house strategic parastatals, including Eskom, under a holding company called Samsoc, which would then be listed individually on the JSE.
From timeslive.co.za
Why it matters
The withdrawal introduces regulatory uncertainty into the South African market. The original plan aimed to restructure SOEs under a holding company model, which would have significantly changed the market structure on the JSE.
Facts regarding the operations of Foschini Group and Eskom within South Africa, including the property sector operating on the JSE.
From timeslive.co.za
Who's involved
- EskomElectricity utility whose listing was proposed under the bill.
- JSEStock exchange where SOEs were planned to be listed.
- National TreasuryTreasury responsible for the fiscal oversight of SOEs.
- South AfricaCountry where the SOE listing legislation was proposed.
- cabinetGroup of officials responsible for withdrawing the proposed legislation.
- parliamentLegislative body where the bill was intended to be voted on.