The V&A Waterfront development — one of South Africa’s top tourist attractions — is up for sale, Minister of Public Enterprises Minister Alec Erwin said in Parliament on Thursday.
”We intend disposing of the V&A,” Erwin told journalists at a parliamentary briefing.
The precise terms are before the Transnet board, which does not see it as a core asset to Transnet, which owns the V&A.
The sale is part of the government’s policy of selling off all non-core businesses. These include housing books (loans), plastic and protein manufacturing companies, business-to-business software companies and ”assets in Cape Town harbour”, Erwin said.
He said the government intends to sell the assets completely and not retain a share in the businesses.
Discussing the contentious issue of state asset privatisation, Erwin said the government will sell all businesses that are not core to its functions.
However, the state will remain a major shareholder in South African Airways (SAA), electricity supplier Eskom, Transnet and weapons manufacturer Denel.
He explained that while the state will retain control, it is looking for investors.
Joint investment schemes are currently being established between Transnet and large iron-ore mines in the Northern Cape and between Eskom and independent power producers (IPPs).
It is estimated that R107-billion will be needed between 2005 and 2009 to meet the country’s growing energy needs. Erwin said Eskom will invest R84-billion over the next five years. The balance of R23-billion is reserved for IPP entrants.
”The idea of selling Eskom to the private sector is a non-starter and does not make economic sense. Bringing in private cash does,” he said.
However, the government will not seek a strategic equity partner for SAA, but will consider other possibilities.
”We have had experience with equity partners — but it’s not the right time in the global airline industry,” he said.
However, he is positive about the airline’s future.
He said he is expecting to see SAA make good progress in the coming year.
SAA is in the process of being separated from Transnet’s balance sheets. This will be finalised by 2006, Erwin said.
Erwin said that after the announcement of five-year investment plans of the state-owned enterprises in the energy and logistics sectors, the state is looking to these arenas to attract foreign investment and boost growth.
”We believe this will make a strong case for the country to be an investment destination and catapult its growth potential to levels beyond 3%,” he said. — Sapa