adminHe said the Government had since sent a delegation to China to study its system where a separate bourse has been created for state-owned companies.
“We have been exploring the idea of setting up an equity exchange for State enterprises,” he said.
“As we speak we have a delegation in China which is exploring the model that the Chinese are following,” Minister Moyo said.
Established in 1994, the China Beijing Equity Exchange (CBEX) is an equity transaction bourse run by the government to facilitate mergers, acquisitions and restructuring of state-owned enterprises.
Reports indicate that the CBEX has developed a unique cross-border expertise and has carried out a large number of deals with foreign investors.
The CBEX is said to have entered into co-operation agreements with major stock exchanges in the world such as the Nasdaq, the Toronto Stock Exchange, and the Zurich Stock Exchange.
Minister Moyo said parastatals were in dire need of recapitalisation.
Listing on the bourse, analysts have said, would set the standards for improved management of the Government-owned companies.
Minister Moyo said the parastatals had failed to list on the ZSE as they failed to meet the bourse’s stringent requirements.
“Unfortunately the standard guidelines for the ZSE are high. Our State enterprises have gone through serious challenges in terms of capitalisation, human capital flight, infrastructure and credit lines so they do not qualify most of them,” he said.
Plans to commercialise and privatise most of the Government-run institutions have remained on the cards for over a decade.
The only former Government companies which have been privatised and have gone on to list on the ZSE include Dairibord Holdings and Aico Africa Limited, formerly Cotton Company of Zimbabwe. — New Ziana.
Online Reporter