(MENAFN) South Africa's economy with an already slow growth is threatened by state-run Corporation's weak performance, firms which account for 20 percent of all capital investment, thus cutting 3 percent off the country's annual growth.
These companies have been underpinning the economy since the 1920s and have arguably always been a drain on state resources, which it used mainly to roll out electricity and other essential services to the black majority.
For example, the northern city of Pretoria has vowed to control bail-outs but has refused to consider privatization, trying to cover a budget deficit of 4 percent of GDP and keep its credit rating above junk.
'With a few exceptions, I don't believe overall we have quality leadership in the state-owned enterprises to drive economic growth,' said a political analyst of NKC African Economics, adding 'They're not productive and they're not making money.'
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