adminEconomic Co-operation and Development Network on the governance of state owned enterprises in Southern Africa held in Midrand, South Africa, recently.
He said the first step is separation at ministerial level, which is having a ministry that is responsible for regulation only and having the ownership and operations functions under a separate ministry.
“Separation at departmental level, that is having a department that is responsible for regulation only and having the ownership and operations functions under the purview of separate departments but under the same ministry,” said Minister Moyo.
He added that State enterprises must be subjected to the same competitive conditions as their international counterparts where taxes, royalties and other fees are levied as per the industry standards in the country.
“If a State enterprise is given exceptional treatment, for example reduced environmental standards, it will affect its competitive position and hence its ability to perform compared to the rest of the industry.”
The minister said that restructuring of State enterprises and parastatals has been ranked high on Zimbabwe’s economic reform agenda, a strategy geared at improving performance and efficiency of State enterprises in the production and delivery of public goods and services.
“The restructuring of State enterprises offers new management mechanism and new ownership structures that support more dynamic economic growth.
“Furthermore, restructuring helps to attract new investment; particularly foreign investment, new technology and management skills, that can help transform the fortunes of many of our State enterprises” he said.
State enterprises when operating efficiently have the potential to contribute 40 percent of the Gross Domestic Product.
Online Reporter