The government said it plans to recapitalise and list Allied Timbers (Pvt) Ltd on the Zimbabwe Stock Exchange as part of efforts to restructure the underperforming parastatal.
Parastatals and State Enterprises minister Gorden Moyo told a Parliamentary Portfolio Committee that oversees his ministry, restructuring of ailing parastatals was part of a government initiative launched last year.
“The restructuring strategies will be guided by need to recapitalise the company in an effort to improve technology plantation and expansion of value addition production base,” Moyo said.
“This process will be completed by the possibility of listing on the stock exchange to facilitate the indigenisation of the sector.”
Moyo said a restructuring memorandum will be presented by the line ministry for consideration by Cabinet and inter- ministerial Cabinet committee on privatisation of parastatals.
Other parastatals earmarked for restructuring include ZiscoSteel, Noczim, Agribank, Zimbabwe Power Company, Grain Marketing Board (GMB), Cold Storage Conmpany, Civil Aviation of Zimbabwe, Air Zimbabwe and Small Enterprises Development Corporation.
“We are now in the process of restructuring GMB.
The idea is to split GMB but the process will appear very slow as GMB is one of the very important parastatals in the country and there shall never be a right time,” said Moyo.
The government plans to unbundle the GMB into a strategic grain reserve (SGR) and a special purpose vehicle company with five commercial strategic business units namely commodity trading, farming and farming support, agro-processing, logistics and poly-bag manufacturing.
He said the SGR will remain responsible for GMB while commercial units will then enter into partnership with investors for the recapitalisation of the companies.
Moyo said Noczim has been unbundled into two companies namely Petrotrade Ltd and the National Oil Infrastructure Company of Zimbabwe, which became operational in January this year.
Transfer of assets from Noczim to the successor companies for accounting purposes has already been done.
The recommended restructuring of Agribank would inlcude partial privatisation of the bank through private placement of 49% shareholding to a strategic partner, whilst the remaining 51% will be retained by the government.
He said the restructuring of Cold Storage Company Bulawayo abattoir has already been approved by the government.
Moyo said the Ministry of Transport, Communication and Infrastructure Development is still considering proposals by Air Zimbabwe, National Railways of Zimbabwe, NetOne and Telone.
Moyo said the Small Enterprises Development Corporation restructuring proposal was still being looked at together with the Ministry of Small and Medium Enterprises.