adminState Enterprises and Parastatals Restructuring Agency (SERA) executive director Mr Edgar Nyoni told New Ziana that commercialisation ensured positive returns for the public entities.
“Commercialisation has nothing to do with change of ownership. It entails implementing a number of general principles that address problems facing these entities,” he said.
Mr Nyoni said Treasury had various programmes needing financing hence it could not meet all the requirements due to liquidity challenges.
“Debt financing and management is critical where an entity has an accumulation of trading losses and huge debts overhang on balance sheets,” said Mr Nyoni.
He urged public entities to consider disposal of idle or obsolete assets, machinery and all non-core assets to eliminate excess costs.
Meanwhile, Mr Nyoni said the commercialisation exercise would be undertaken or implemented with support of the line ministries and other government departments.
Government recently launched a working document aimed at enhancing transparency, accountability and credibility in the restructuring process.
Zimbabwe has 78 state enterprises most of which are operating at a loss due to a variety of factors chiefly under capitalisation. — New Ziana
Online Reporter