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NewsDay

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Commandeering business to NRZ a step too far

Opinion & Analysis
THE call by the National Railways of Zimbabwe for government to prescribe that certain bulk commodities be transported by rail as a means of reviving the ailing parastatal is shocking to say the least as people prefer using a mode of transport that they desire as long as they can afford to pay for it.

THE call by the National Railways of Zimbabwe for government to prescribe that certain bulk commodities be transported by rail as a means of reviving the ailing parastatal is shocking to say the least as people prefer using a mode of transport that they desire as long as they can afford to pay for it.

Comment: NewsDay Editor

Notably, there has been too much bungling at NRZ over the years, including too much political interference and populist policies dating back to the era of the so-called Freedom Train. It is these poor policies that eventually grounded the country’s rail system. Indisputably, if the NRZ had been run commercially, then it would have been viable today.

Regrettably, these nauseating political considerations and abuse by the politicians have affected operations of all 78 plus State corporations around the country to the detriment of the economy resulting in the majority being made redundant in the process.

Therefore, NRZ chairman Larry Mavhima should be clever enough to know that it insensible to compel people, against their choice, to use the NRZ for their business.

Instead of seeking government to rubberstamp his clearly archaic strategy, his job should be to ensure that the ailing parastatal puts its house in order by re-strategising, and naturally the institution will attract business.

This idea of ring-fencing certain commodities should be moved by rail is antiquated and primordial in Zimbabweans’ view.

What the NRZ should simply do is to get investors to pour funds into their business. They must be warned, however, that investors, too, can only come in when there is a viable business plan. We surely cannot be using the outdated command system in this day and age.

Although NRZ management admitted they want to prove themselves first so that they are not prescriptive, this is exactly what they are doing.

The moment they are commercially viable, they will automatically attract business rather than have government intervention to have businesses use the NRZ’s services.

The NRZ’s infrastructure has been allowed to collapse over the years due to lack of investment and we hope that this will not be the case in future. It is no secret that efficient and reliable services will automatically attract customers and this is the business model that they must adopt.

While it is noble idea for government to scout for strategic partners for the NRZ, what is essential, to begin with, is to come up with a comprehensive capitalisation programme that can convince potential suitors to come into the picture.

At a time Zimbabweans are still smarting from the huge Air Zimbabwe debt that was foisted on them by government again, surely common sense must prevail –we cannot foist the NRZ burden on the suffering Zimbabweans again.

Perhaps Zimbabweans would want to know who really is responsible for “resurrecting” all these struggling State corporations into profitable entities if their business is to always want the public to take over their debts.

Honestly Cde Mavhima, you must be smarter than this. What if you become a government minister some day, wouldn’t you condemn the whole country but yourself and those around you? Wise-up please!