The stated policy of the South African Government is to privatise certain State Owned Enterprises ("SOEs"). This involves changes in the relationship between the government and the private sector, resulting in a reduction in the size and functions of government activities in the economy. This policy presents unique opportunities for investors to become involved in established core businesses in South Africa. It is thus essential that any such investment is structured appropriately and that due regard is had to the various regulatory requirements of the South African legal system.