Privatisation has both an economic and a political face. In South Africa, this Janus-faced character is revealed by the juxtaposition of economic and political arguments for and against the process of privatisation initiated by the National Party, during the transition to majority rule. This paper argues that the NP set out to fundamentally reorganise the structure of South Africa's political economy as an exit strategy. Although it justified privatisation by employing economic arguments, this ostensible depoliticisation masked political motives. Ironically, the weak economic case reveals the political face of privatisation in South Africa. The timing and context of South Africa's privatisation process is difficult to defend on economic grounds, but it did make political sense.