Parastatals reform on course

By ZBC Reporter
GOVERNMENT is making huge strides in achieving objectives of the Transitional Stabilisation Programme (TSP) through state enterprises reforms to enhance their efficiency and effectiveness.
Zimbabwe has over 100 parastatals whose capital stock is around 14 billion United States dollars but a source of worry is that 90 percent of these entities have been loss-making, contributing a paltry 2% to the national output in sharp contrast to the past 60%.
It is against this background that a number of parastatals such as Grain Marketing Board, Zinara, TelOne, NetOne, Agribank and Petrotrade among others, are at different stages of broad reforms to bring order and financial discipline in their operations.
Economist, Dr Prosper Chitambara applauded efforts by the government to efficiently operationalise parastatals.
“The reforms around state-owned enterprises reflect government’s strategic intent on turning around the country’s economic fortunes,” said Dr Chitambara.
Another economic analyst Batanai Matsika said although the government is taking necessary steps towards sustainable economic development, the process requires streamlining with other policy initiatives.
“It is laudable as the government has embarked on this necessary journey to achieve sustained economic development,” he said.
The parastatal reform agenda is taking various forms such as liquidation, full or partial privatisation as well as merging or separation of entities towards a common objective of significantly contributing to economic development.