State registers private company to monetise assets
Innocent Selatlhwa | Monday March 16, 2026 06:00
Responding to a questionnaire from Mmegi, Permanent Secretary in the Ministry, Goitsemang Morekisi, said Catalyst Real Estate (Pty) Ltd was conceptualised following an extensive feasibility study on optimising government assets.
“The core intention is to establish a specialised, agile vehicle to facilitate the issuance of bonds backed by government properties. This structure allows the Government to unlock the latent value in its property portfolio to fund infrastructure development without immediately disposing of core assets. It is a modern approach to asset monetisation, enabling the funding of new projects through future revenue streams,” she stated.
While government traditionally operates through public entities or statutory corporations, Morekisi said the registration of Catalyst Real Estate as a Private Company is a deliberate strategic choice. This structure offers the commercial flexibility and speed required to engage with private capital markets and investors. A private company framework is better suited for managing a bond-issuance program, as it allows for more efficient corporate governance, contractual agility, and adherence to the specific accounting standards expected by financial institutions, which can be constrained within the standard public service operating procedures.
The company, which was incorporated on 26 February 2026, thus far has four board members, with more expected to be appointed soon, as well as the Chief Executive Officer. The current Board members are led by chairperson, Real Estate expert Nightingale Kwele, with other members being Cedric Badabili, Matlho Seitshiro and Piyush Sharma.
According to Morekisi, the board of directors comprises individuals with proven expertise in finance, real estate, and law. “They were selected through a rigorous process overseen by the line Ministry, ensuring compliance with the principles of the Public Finance Management Act and corporate governance best practices,” she said.
She said the names of the directors are a matter of public record and have been lodged with the Companies and Intellectual Property Authority (CIPA), and encouraged the public to access the registry for the official list.
On whether the company will be competing with the private sector, Morekisi said Catalyst Real Estate is not designed, nor will it be structured, to compete with the private sector for standard government tenders.
“Its mandate is specific to the strategic management of a bond program for identified government properties. Its operations are focused on capital markets and asset management, not on bidding for routine procurement contracts against local private companies. Where development or management services are required, the company will be expected to procure those services from the private sector, thereby stimulating economic activity,” she said.
On why the company is owned through the Ministry of State President, Defence and Security, Morekisi said the Ministry serves as the custodian of the entity due to the cross-cutting nature of its mandate.
“The assets being considered for this programme often fall under the jurisdiction of various Ministries. Housing the initiative under the Ministry of the State President provides the necessary high-level oversight and coordination required to align the project with the National Development Plan and the overall economic strategy of the Government. This ensures policy alignment and whole-of-government coordination,” she said.
Quizzed on why Minister Moeti Mohwasa has been listed as the beneficial owner as opposed to senior civil servants, Morekisi said that while the Permanent Secretary is the accounting officer responsible for the day-to-day administrative oversight and public finances of the Ministry, the Minister holds the political and policy mandate over the entity. Further, she referred to the definition of a beneficial owner under the Companies Act. A 'Beneficial Owner' includes a person who exercises ultimate control over a legal entity. Given that the Minister sets the policy direction, answers to Parliament on its performance, and holds the ultimate authority over its strategic objectives, Morekisi said the legal compliance requirement necessitates listing the Minister to satisfy the 'control' definition, rather than the administrative function of the Permanent Secretary.
“This is distinct from other entities where the shareholding is held differently, but it complies fully with the legal requirement to identify the natural person who ultimately controls the entity,” she said.