State institutions must embrace ‘concession’ deals with private sector - ANC

The African National Congress (ANC) said that State institutions must embrace "concession" deals with the private sector to drive development.

The party noted that the government no longer has the capital to improve State-owned enterprises (SOEs) on its own.

On Saturday, the ANC kicked off the first day of its national lekgotla, where it’s discussing a programme of action for government.

The lekgotla comes a few days before the Government of National Unity (GNU) Cabinet meets for its own strategy session this week.

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ANC President Cyril Ramaphosa said while the party doesn’t support privatisation, it is in favour of public-private partnerships, like the upgrade of the N3 highway.

“When those who were given the rights as concessionaires to develop those roads, when the period comes to an end, the entire road administration comes back to the State. What we are now doing is because our SOEs - Eskom, Transnet and others - do not have the balance sheet to support great development.

“We are now roping in the private sector to run certain aspects. It is like build, operate and transfer and through this, we are bringing massive investments,” he explained.