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Examination Of The Performance Of The Selected State-Owned Entity In South Africa: Issues And Challenges Surrounding Eskom

Author

Listed:
  • MAGATANE TSHWARELO MASHILO

    (Department of Business Management (HRM), University of Limpopo, South Africa)

  • FRANCE KHUTSO LAVHELANI KGOBE

    (Institute for Social Development, University of Western Cape, South Africa)

Abstract

This paper aims to examine the performance of the selected state-owned enterprise (SOE) Eskom. After the democratic era of 1994, there were concentrated efforts in both the public and private sectors in South Africa to restructure the economy to reflect more democracy and inclusiveness in the economy. These efforts have led to the government's recognition of SOEs as essential to economic development, particularly in the provision of services such as electricity, transportation, and telecommunications. However, there seems to be a consensus that there is still a long way to go to meet service delivery targets and achieve the expected excellence SOEs, in Eskom. The major SOEs in South Africa have come under criticism and the media has highlighted their shortcomings. Restructuring, Unbundling, and establishment of ministerial roles in electricity are amongst some of the perfect evidence of challenges by this SOE. Poor governance, mismanagement, allegations of fraud and corruption, and lack of financial sustainability seem to characterize this SOE. This paper is purely theoretical and relies on a literature review to support its arguments. The paper takes note of the goal-setting theory and its ideals to extract and explain the arguments. The study draws on journal articles, books, websites, financial reports, government and performance management reports, and other available materials to support the study's question. As remedies, the paper suggests establishing and enforcing accountability systems and penalties for loss of property or money, further restructuring of boards, reviewing appointment processes, and enforcing performance management systems to improve SOE performance.

Suggested Citation

  • Magatane Tshwarelo Mashilo & France Khutso Lavhelani Kgobe, 2023. "Examination Of The Performance Of The Selected State-Owned Entity In South Africa: Issues And Challenges Surrounding Eskom," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 10(2), pages 101-110, December.
    • Handle: RePEc:edt:jsserr:v:10:y:2023:i:2:p:101-110
    DOI: 10.5281/zenodo.15254240
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    References listed on IDEAS

    as
    1. P. B. Zondi & Z. Robinson, 2021. "The Relationship between Government Debt and Economic Growth in South Africa with Specific Reference to Eskom," EuroEconomica, Danubius University of Galati, issue 2(40), pages 17-34, November.
    2. Miyamoto, Katsuhiro & Yu, Jinping, 2000. "Macroeconomic Policy and Ownership Structure in a Mixed Transition Economy," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 762-785, December.
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    4. Lorren Kirsty Haywood & Nikki Funke & Michelle Audouin & Constansia Musvoto & Anton Nahman, 2019. "The Sustainable Development Goals in South Africa: Investigating the need for multi-stakeholder partnerships," Development Southern Africa, Taylor & Francis Journals, vol. 36(5), pages 555-569, September.
    5. F. K. L. Kgobe & K. R. Chauke, 2021. "Ethical leadership and public accountability: Problematiques of South Africa's State-Owned Enterprises," Technium Social Sciences Journal, Technium Science, vol. 26(1), pages 43-53, Decembrie.
    6. Oluwayemisi Adebola Abisuga-Oyekunle & Swapan Kumar Patra & Mammo Muchie, 2020. "SMEs in sustainable development: Their role in poverty reduction and employment generation in sub-Saharan Africa," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 12(4), pages 405-419, June.
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    More about this item

    Keywords

    State-Owned Entities; performance; governance; eskom; goal setting theory;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • H82 - Public Economics - - Miscellaneous Issues - - - Governmental Property

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