An initiative in addressing the needs of State Owned Enterprises in business and financial control, business roadmap, and governance in preparing them for IPO preparations.

Definition

    • SOE as defined by OECD includes enterprises where the state has significant control through full, majority, or significant minority ownership. In this definition we include SOEs which are owned by the central or federal government, as well as SOEs owed by regional and local governments.
    • The proportion of SOEs among the Fortune Global 500 has grown from 9% in 2005 to 23% in 2014, including a greater presence in the top rankings. This increased SOE presence in the Global 500 has been driven primarily by Chinese SOEs
    • In Africa, SOEs are estimated to represent 15 per cent of the gross domestic product (GDP), while in the Middle East and North Africa they make up more than 50 per cent of GDP.
  • SOEs also play a significant role in the economies of major emerging markets such as Brazil, China, India, Indonesia and Russia

Government Ownership

Advantages

Disadvantages

  • furthering social outcomes
  • providing physical infrastructure
  • creating stability in times of crisis within and across supply chains
state ownership can destroy value if best practices in ownership and management are not applied: of most concern to CEOs are issues of corruption, bribery and inefficiency