Flawed corporate governance of state-owned entities (saa) in south africa: lessons from rwandair and ethiopian airlines

State-owned companies (SOEs) hold a distinct and contrasting position in the majority of governments worldwide. They function as commercial enterprises while also being obligated to promote the political interests of the state.1 The term SOEs lacks a specific or widely agreed-upon definition. The Organisation for Economic Co-operation and Development (OECD) defines SOEs as enterprises where the state has considerable control through full majority or major minority ownership.2 This definition encompasses SOEs that are owned by the central or federal government, as well as those owned by regional and local governments.3 Another definition is that SOEs are: entities in which the state owns more than 50% of voting shares of joint-stock companies (JSCs), or more than 50% of shares in the authorised capital of limited liability partnerships, including national managing holdings, national holdings, and national companies, in which the state is a participant or shareholder, as well as subsidiaries and affiliated organizations that are part of their corporate structure, except for non-residents.4 On the African continent, SOEs play an important role in many of the countries’ economies.5 They have a vital role in national development as they provide citizens with commodities such as water, health sanitation, electricity, and telecommunications.6 In the Southern African economies, SOEs are fundamental drivers to remedy market failures and remove direct obstacles to development SOEs are found in many of the countries’ national development strategies.7 In

Grantor dc:publisher.institution

University of the Western Cape

Year dc:date.issued

2024

Author dc:creator

• Moganane Kago

• Corporate governance
• State-owned entities
• State-owned companies
• South african airways
• Rwandair
• Ethiopian airlines

Licence

• https://uwcscholar.uwc.ac.za/bitstreams/64ecba63-b0d4-4b30-ad5d-e46d90b3831d/download