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Ailing parastatals and other State enterprises should find ways of resuscitating their operations because Government cannot continue pumping money into companies that do not bring returns.
While the economy has not been performing well for more than a decade now, we believe the introduction of the use of multiple foreign currencies should have provided some window of relief for most businesses.
We know the economy is weighed down by the illegal economic sanctions imposed by the West but it is also prudent upon parastatals and other State enterprises that have been caught in the sanctions web to think outside the box.
As it stands it does not seem like the United Kingdom, the European Union, the United States and their Western allies will lift sanctions any time soon.
This requires Zimbabwean businesses, and not only parastatals and State enterprises, to find ways of surviving in a tough environment.
It is crucial to look for new markets in other regions of the world other than the European Union and other traditional markets in the West.
Reality should dawn on our businesses that they cannot continue to wait for the lifting of the embargo, while in the case of parastatals and State enterprises, they continue to bleed Treasury. The parastatals and State enterprises must come up with strategies and should be able to approach other arms of the State to find ways of getting round the sanctions dilemma.
Our universities have a lot of expertise and have done extensive research which could come in handy to help our businesses. Think tanks can also be set up to study our scenario and come up with solutions of how to get our parastatals, State enterprises and the entire economy to work again. The think tanks can be established in terms of sectors and work with the businesses in those particular industries to help revive them.
In view of this, we commend the position taken by Government over the problems bedevilling the Cold Storage Company.
Deputy Ministers Paddy Zhanda (in charge of Livestock) and Davis Marapira (in charge of Cropping, Mechanisation and Irrigation) were in Bulawayo on Tuesday to meet the board and management of the Cold Storage Company.
The Ministers made it clear that Government was no longer prepared to continue nursing ailing parastatals such as the CSC and it was time management and boards of such companies think outside the box and come up with strategies to turn around their businesses.
CSC made a $3 million loss in the first half of this year and is swimming in a debt of about $22 million while it owes workers $2,1 million in salary arrears.
The firm is operating at seven percent capacity utilisation and has a skeletal workforce of about 500 workers compared to 1 500 in 1999.
CSC chief executive officer Mr Ngoni Chinogaramombe told the Ministers that the firm had been overtaken by private operators when it was supposed to be country’s strategic livestock development engine.
Last year the company made a loss of $10 million and requires $58 million for recapatilisation.
But as Deputy Minister Zhanda pointed out, the business environment was tough for most companies and the CSC should have considered joint ventures or partnerships with private firms to preserve its viability instead of enjoying the comfort of monopoly.
It is quite sad that, according to Deputy Minister Zhanda, there were businesspeople who approached CSC with proposals for joint ventures but found no joy.
After this we expect to see things happening at CSC and as Deputy Minister Zhanda said, the firm must open up and consider partnerships in line with Government’s indigenisation policy. Private abattoirs are enjoying good business and there is no reason for CSC to be lagging behind.
Online Reporter