Privatisation and PPP key to improving SOE efficiency

Across Africa state privatisation and Public Private Partnerships (PPP) are being turned to as a way to improve infrastructure, enhance service delivery, and provide stability to State Owned Enterprises (SOEs). While privatization and PPP projects are different, certain aspects of PPPs can be adapted for the privatisation of SOEs, to make them appealing to private investment. This can be done by buying assets or outright buying SOEs. This way governments can reduce their financial risk while improving the operation and delivery of SOEs. Cresco group has extensive experience providing a wide range of services to private companies and governments contemplating investing in PPP projects or undertaking privatization projects. With a proven track record and experience across a diverse portfolio of industries, our team are willing to do the groundwork to turn PPP and privatisation projects into bankable solutions and increase the likelihood of its success. Cresco Group believes that privatisation and PPP projects can significantly impact South Africa’s economy in various ways. By improving the management and operation of key SOEs there can be numerous benefits for the economy, including stable energy and more efficient transport of valuable commodities. Cresco Group Managing Director Conrad Hefer explains: “Over the years we have seen how the mismanagment of critical SOEs across Africa has impaired and hampered economic growth. By seeking private investment, privatisation, and PPP infrastructure projects, governments can significantly improve the management and operation of SOEs. This can potentially have a positive impact on vital industries and economies.”