Gvt moves to restructure SOEs

By Ndafadza Madanha

GOVERNMENT has approved the liquidation, privatization and merging of State owned enterprises (SOEs) as it seeks to enhance performance and promote good corporate governance in the entities.

According to Finance and Economic Development minister Patrick Chinamasa said each line ministry is expected to provide a memorandum to cabinet on the implementation modalities.

Notably the Zimbabwe Investment Authority (ZIA), Special Economic Zones (SEZs), Zimtrade and Join Venture Unit are to establish a one stop shop for potential investors.

Powertel, Zarnet and Africom are to be merged while the Postal and Telecommunications Regulatory Authority and BAZ will also merge.

The reforms will also see the dissolution of the ZETDC, ZPC and Zesa Enterprises and creation of a single board to take charge of the entities.

Chinamasa said cabinet had deferred resolution on Air Zimbabwe.

CSC has been directed to finalize the joint venture proposals by the Swiss and United Kingdom investors by the end of this month.

GMB is expected to complete work on delinking the strategic grain reserve and the GMB’s commercial operations.

The NRZ will continue with its recapitalization programme while Arda is to procced on current trajectory with identified strategic partners.

SMEDCO is to be merged with Empower Bank and establish the Empowerment and Developmet Bank that will have a unit focusing on small and medium scale enterprises and Youth Development programmes.

Among the parastals to be partially privatized are Zimpost, IDBZ, TelOne, NetOne , Telecel and Zupco.

The Road Motor Services will be privatized in tandem with the NRZ programme.

Those to be liquidated are National Glass Industries and Motira.

Zimglass has been directed to look for a strategic partner owing to the world wide movement towards the replacement of plastics with glass.

Chinamasa said the identification of a strategic partner was urgent as the company currently faces litigation that could lead to dissolution or liquidation.

Kingstons was directed to dispose all its assets with the exception of its two Radio Licenses.

Zinara will remain under the ministry of Transport and Communication but the organisation was urged to improved transparency and accountability in its operations.

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