Finance minister Mthuli Ncube has proposed the privatisation of at least sixteen State Enterprises and Parastatals (SEPs)and liquidate five others within the next twelve months. Addressing delegates at the 2019 Parliament pre-budget seminar in Bulawayo last week, Ncube proposed the partial privatisation and joint ventures of the SEPs which include TEL-ONE, NETONE,PETROTRADE,POSB, ZIMPOST among others.
Some of the SEPs will be listed on the Zimbabwe Stock Exchange(ZSE).
He also proposed the liquidation of five SEPs which include Kingstons., ZIMGLASS,Chitungwiza Garment Factory and National Glass Industries.
Ncube said the move was in line with cutting government expenditure as most SEPs were milking the fiscus through over dependence and poor perfomance.
“The 2019 National Budget first and foremost targets strengthening fiscal responsibility and management of government expenditures in order to create an appropriate environment for increased budget financing of developmental programmes that enable and enhance the economy’s overall productive activities,” noted Ncube.
Last week President Emmerson Mnangagwa blasted non performing State Enterprises and Parastatals (SEPs) for being a burden on the government as they stifle economic growth through dependence on the fiscus.“Non-performing public enterprises coupled with tax payment evasion and avoidance continue to be an albatross around the neck of government .
“I therefore challenge you to use platforms such as this one to collectively find feasible sustainable and lasting strategies to stop this worrisome culture,” he said.
Most SEPs have in the past recorded perrenial losses as a result of corruption and lack of proper corporate governance and Ncube’s proposal has been welcomed by economists and might be the panacea to this scourge.