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Tinashe Makichi Business Reporter
Government has signed a $4 million agreement with the African Development Bank on institutional support for state enterprise reform and delivery project.
The grant was signed between the Bank’s Group Director General for Southern Africa Regional Development and Business Delivery Office Tonia Kandiero and Finance and Economic Development Minister Patrick Chinamasa.
The project which was approved by the Bank’s Board in January 24, 2017 aims to build capacity with a view to strengthening the result-based management system within Government and improve efficiency of the State enterprises and parastatals.
Speaking on the occasion, Mrs Kandiero highlighted Government’s commitment to sound corporate governance and efforts to revive the country’s economy through improved service delivery, with special focus on integrated results management.
“No profound change can take place in our member countries including Zimbabwe, in the absence of effective institutions with good corporate structure, accountability, culture and mechanisms to track performance.
“State owned enterprises are key to delivering services and enabling citizens and private capital to realise their potentials,” said Mrs Kandiero.
She recalled that historically state-owned enterprises were a significant source of employment as well as productive investment with up to 40 percent contribution to the Gross Domestic Product of the country.
However, in recent years their performance has dwindled and posed a significant strain on the national budget.
Minister Chinamasa indicated that the project is in sync with the national economic blueprint, Zimbabwe Agenda for Sustainable Socio-Economic Transformation, under the public administration, governance and performance management sub-cluster.
“It also dovetails with the objective of the country’s Interim Poverty Reduction Strategy for 2016-2018, Pillar VII, aimed at strengthening governance and institutional capacity for effective service delivery and combatting corruption.”
According to Minister Chinamasa, the project will also assist Government in implementing reforms on public sector financial management and governance reforms in state-owned enterprises.
“The project will contribute to enhanced transparency and accountability through fostering good governance, efficiency and enforcing best practices,” the Minister further noted, urging officials to ensure that Zimbabwe gets value for money through timely implementation and completion of the project.
The African Development Bank has so far committed about $26,5 million towards developmental projects for Zimbabwe which are consistent with Government’s priorities enshrined in its IPRSP.
Government in the last quarter of 2016 secured three new grants from AFDB for the Youth and Women Enhancement Project, the Institutional Support for State Enterprise Reform and Delivery Project and Alaska Karoi Power Transmission Reinforcement.
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