Govt to roll out parastatal reforms

THE government has come up with a timeline for the restructuring and disposal of shareholding in some State enterprises and parastatals beginning with the unbundling of Zesa Holdings at the end of the month.

Report by Tarisai Mandizha

Restructuring of loss-making State-owned enterprises has taken longer than expected due to reports of discord in the inclusive government over the implementation of the policy.

The entities to be realigned include the Agriculture Development Bank of Zimbabwe, Zimbabwe Power Company, Agricultural Rural Development Authority, Air Zimbabwe, Grain Marketing Board (GMB), Zimre, POSB, Zimbabwe Grain Bag, Allied Timbers, NetOne, TelOne and National Railways of Zimbabwe (NRZ).

The country has 78 parastatals that are making huge losses.

According to an action plan presented to Parliament this week by State Enterprises Restructuring Agency (Sera) executive director Edgar Nyoni, the unbundling of Zesa as part of power reforms should be implemented between January and December this year.

Under the plan, Zesa would be dissolved paving way for the formation of the State-owned National Grid Service Company and unbundling the Zimbabwe Electricity Transmission and Distribution Company into separate transmission and distribution entities and transferring the transmission further to the National Grid Services Company.

In order to turn around the fortunes of the debt-ridden Air Zimbabwe, Sera said there was need to finalise modalities for debt assumption by government.

The Air Zimbabwe debt has since ballooned to $188 million.

Financial advisers would be engaged so as to come up with recommendations.

It is anticipated that a strategic partner for the airline would be scouted for between June 2013 and 2014 next year.

The GMB has until August this year to undertake a financial, legal and regulatory due diligence, isolate contractual obligations still binding the current entity and establish whether these could be terminated or assigned to either of ensuing entities and come up with the names of the new entities.

It is also expected to come up with proposals for the management structure, resolve labour issues such as identification of staff to be transferred and retrenched, and secure a strategic partner for the commercial entity.

However, Sera is still working with NetOne, Tel One and NRZ and their line ministries to prepare initial restructuring plans. It is anticipated that strategic partners should be in place by June this year.

In 2011 the government approved the State Enterprises and Parastatals Management Bill and the State Enterprises Restructuring Agency Bill that were expected to improve the efficiency of parastatals.

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5 Comments

  1. in zimbabe everything runned or owned by government is in poor states. look at cars and structures very poor indeed unless if it generate money directly or if it help secure other peoples position. in developed nations, most attractive things and run entities ar govenment owned. Zimbabwe is more than a capitalist state

  2. Get rid of the zpf patronage system and fire non performers in management positions to start with dont waste money rebranding.

  3. If an entity can hardly perform as a single unit, how in three devils name can one expect miracles when that company is disintegrated? These guys vakapererwa kare and they are just dumb. Dont expect any new and brilliant ideas to come out of their warped brains. There are scandals unresolved at Netone, fraud and self enrichment @NRZ, who expects the GMB to perform if there is just no meaningful farming going on? How do u expect idiots who at this age and era rely on seasonal rains which are erratic to turn around the fortunes of GMB? Air Zim,Zisco,NRZ, Netone are all waiting for strategic partners! From where? Who in his normal senses can trust thieves with his hard earned or borrowed cash? Basa rokusunga zvima tie nama suit zvisina kana nokumaturo kose. Marema avanhu basa ndero kupanana zvinzvimbo nechikongora(nepotism). Go to Genesis 29 and read what Noah gave to Ham who laughed at his nakedness..Uchafa uchisevenziswa nokukumbira mugodhoi!

  4. This sounds more like it. really the government has to do something pertaining those underperfoming parastatals. In short what has to be done is to privatise but what is now scary is the issue of indegenisation and with indegenisation we are going nowhere as a nation.

  5. It is most amusing to watch the folly of Africa and Africanized cities elsewhere in the world. For example, Haiti has been free of the impearalists since the time of Napoleon; yet the grinding poverty just grows and grows. Africa must learn how to use the talents (and brains) of europeans and asians in order to prosper.

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