1.1 Background The global economic downturn, due to the collapse of the financial system, affirmed the need for a strategic role of the state in counteracting the effects of the downturn and stimulating recovery, this entailed increasing investment in the economy by the state and much more effective use of monetary policy to stimulate economic activity. The recognition of the role of the state in the economy has increased the need to ensure that state- owned companies (SOCs) align their activities to support the broad developmental outcomes of Government. This required the Department to: