Government Support to State-Owned Enterprises: Options for Sub-Saharan Africa

Some state-owned enterprises are facing significant financial distress during the pandemic and economic crisis. Some operate in core sectors of the economy and provide basic services and may need support to avoid collapse, raising the question whether governments should provide temporary exceptional financial assistance. This note discusses guiding principles to help decide when countries should intervene to help these companies, and how this support can be done given the financial constraints of governments. It is also imperative that governments strengthen oversight and firm governance to ensure public resources are well used. While the focus on this note is on Africa, these principles are applicable across other regions.