State Enterprises reform yields positive results: Government

By ZBC Reporter
THE government says the reform agenda for state enterprises and parastatals are yielding positive results with the emergence of profit posting and declaration of dividends, at some of the state enterprises and parastatals in the recent past, while some have managed to reduce losses.
Briefing journalists on the cabinet decisions, the Minister of Information, Media and Broadcasting Services, Senator Monica Mutsvangwa said the new dispensation requires state enterprises and parastatals some of which remain key enablers to business and investment, both domestic and foreign, to play a pivotal role towards the realisation of the vision 2030 aspiration for a prosperous and empowered upper-middle-income society.
“The reform initiatives are being implemented at a time when the majority of the strategic state enterprises and parastatals have been operating sub-optimally as evidenced by their failure to adequately perform and fulfil their mandates. Much ground was covered during 2019 towards revamping performance of the public entities under the state enterprises reform framework, as articulated in the Transitional Stabilisation Programme 2018-2020,” she said.
“The implementation of the reform strategy for the public enterprises and parastatals has been integrated, and now embraces the following restructuring, privatisation and commercialization of public entities improved corporate governance of public entities, a sustainable remuneration framework for public entities and facilitate and transparent public procurement systems and process across public entities.
“The implementation of the above-stated reforms is key ion the unlocking of value in the public entities sector, in particular, the current privatisation programme presents lucrative investment opportunities for both domestic and foreign investment, leading to the injection of the much-needed capital for resuscitation.
Minister of Finance and Economic Development, Professor Mthuli Ncube said a number of state enterprises are posting profits while decisions have been made to re-tender the National Railways of Zimbabwe which is key towards revamping the institution.
“The agenda to reform parastatals have been positive. We decided to liquidate the national gas industry and the Motira while also we merged Zimbabwe Investment Authority, Zimbabwe special economic zones to form ZIDA. We also decided against merging women’s bank, Empower Bank. A lot of progress has been made, in terms of those posting profits, we have Minerals Marketing Corporation of Zimbabwe posted profits and declared dividend. NetOne is going to declare a dividend very soon,” he said.
State enterprises used to contribute 60 percent to the Gross Domestic Product.