GOVERNMENT plans to dissolve the boards of the subsidiaries of the state-run power utility, Zesa Holdings Limited and allow Zimbabwe Power Company (ZPC) to engage strategic partners for its power generation project.
In the same vein, priority would be given to securing a strategic partner for the Infrastructure Development Bank of Zimbabwe, POSB, Industrial Development Corporation of Zimbabwe and telecoms operators TelOne and NetOne, Finance and Economic Development Minister Professor Mthuli Ncube has said.
ZESA has three units, namely Zimbabwe Electricity Transmission and Distribution Company (ZETDC), ZPC and Zesa Enterprises Private Limited (ZENT).
A holistic evaluation of public entity reforms through strategic portfolio reviews and comprehensive diagnostic analysis by sector would be undertaken next year.
Presenting the 2023 national budget last Thursday, Prof Ncube announced several reform measures targeting parastatals so as to unlock value from State entities.
He said the State enterprises and parastatals (SEPs) reforms have been guided by the Short to Medium Term Reform Framework (SMTRF), the National Development Strategy (NDS) 1 and Vision 2030.
“Drawing lessons from the successes and challenges faced in implementing the SEPs-SMTRF since 2018, it is envisaged that the SEPs reform priorities for 2023 will be guided by the engagement of strategic partners for IDBZ, POSB, IDC Subsidiaries, TelOne and NetOne,” he said.
Prof Ncube said several State-owned enterprises have been transformed and now operate viably and noted the national carrier, Air Zimbabwe, which is now on recovery path.
The minister also hinted on the planned mergers of Genesis and Petrotrade, merger of Broadcasting Authority of Zimbabwe and Postal and Telecommunication Regulatory Authority. Powertel, Zarnet and Africom will also be collapsed into one entity.
This includes…“complete dissolution of all subsidiary boards for ZESA Holdings and allow ZPC to engage strategic partners for its power generation projects,” Prof Ncube said.
The implementation of the short-term recapitalisation strategy of the National Railways of Zimbabwe is also planned.
Last week, Minister of State for Presidential Affairs and Monitoring Implementation of Government Programmes, Dr Joram Gumbo, said the Government has pledged ZW$2 billion to fund the refurbishment and resuscitation of NRZ as the transport entity is a cog in the attainment of Vision 2030.
The parastatal has embarked on a US$3,5 million revamping programme of its rolling stock to improve operational efficiency. The project includes a US$2 million export-fit wagons refurbishment initiative that began in October 2021 and is expected to save Zimbabwe millions of dollars in foreign currency.
The railway organisation is grappling with a host of challenges among them, obsolete rolling stock and ageing railway lines. – Chronicle
- Latest
- Trending
