Government To Privatize 16 State Enterprises

Through a series of State enterprise reforms, the government is aiming to privatise 16 entities, merge 13 parastatals and liquidate two others.
The government’s intentions were confirmed by State Enterprises Restructuring Agency (Sera) executive director Edgar Nyoni.
Nyoni made the confirmation whilst speaking at the just ended 2018 Confederation of Zimbabwe Industries annual congress (CZI) held in Bulawayo. The Sera executive director revealed that the government shall embark on a major overhaul, that will see 107 State-owned enterprises and parastatals grouped into five public entities and incorporated into parent ministries as departments.

Said Nyoni:

The reality on the ground shows that most State enterprises are operating sub-optimally hence posting financial losses and their contribution to the GDP has drastically declined to around 15 percent.

The major challenges that are cited for this dismal performance include noncompliance to good corporate governance practices, huge debt overhang, undercapitalisation, poor debt recovery strategies, flight of skilled manpower and unsustainable salary, allowance and benefit packages

More: Daily News

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