INTERVIEW: State-Owned Enterprises: Insights from Business and Economics Researcher Josef Kefas Sheehama

In a recent discussion, Business and Economics Researcher Josef Kefas Sheehama shared his perspectives on the state of state-owned enterprises (SOEs) in South Africa and Namibia, shedding light on critical issues and proposed reforms.

Sheehama addressed the current proposal in South Africa to reassign the shareholder responsibilities of SOEs to relevant ministries, such as the Ministry of Energy. While acknowledging the potential benefits of this move, he expressed concerns about the risks of political interference. Sheehama warned that if politicians become too involved in the management of SOEs, it could undermine their efficiency and effectiveness, potentially exacerbating existing challenges.

He drew parallels between South Africa and Namibia, noting that both countries face similar difficulties with their SOEs. Sheehama emphasized the urgent need for reform to address these issues and improve service delivery. He stressed that accountability and high performance standards for SOE executives are crucial for turning around the fortunes of these enterprises.

In Namibia, Sheehama commended the recent establishment of the Public Enterprises Chief Forum, which aims to enhance the oversight and management of state-owned enterprises. He viewed this initiative as a positive step towards improving the performance and financial health of Namibian SOEs. However, he cautioned against allowing political considerations to interfere with the forum’s work.

Sheehama concluded by advocating for a balanced approach: governments should support SOEs with strategic guidance and resources but avoid direct political involvement in their day-to-day operations. Effective management and decisive action are essential for addressing the challenges facing state-owned enterprises and ensuring they deliver valuable services to the public.

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