Govt begins foreign  investment deals in State giants

Zimbabwe is engaging transaction advisers in deals to attract foreign investment in its larger State-owned enterprises (SOEs), which are undergoing reforms to make them more competitive, Finance minister Mthuli Ncube has said.

Ncube began a new round of reforms when he became minister in September aimed at streamlining its lumbering SOEs by introducing private capital, curbing overcapacity, shutting down “zombie” subsidiaries and restructuring assets.

“Having approved the implementation framework for 43 SOEs and parastatals in 2018, government has targeted five public enterprises — Tel-One, NetOne, Telecel, Zimpost and POSB — for immediate reforms and work is already underway to identify transaction advisors. Government projects to realise over US$350 million from this initial process,” Ncube said.

“Other key reforms underway include turning the Grain Marketing Board (GMB) into a strategic reserve entity under government and a commercial arm; improving the governance, leadership and operational efficiency at Allied Timbers; re-bundling Zimbabwe Electricity Supply Authority into a single corporate board to improve governance; the rationalisation of Industrial Development Corporation units and partial privatisation, as well as many more.”

Ncube said he was establishing a One-Stop-Shop Investment Centre, and legislation to establish a specific and dedicated institution — the Zimbabwe Investment and Development Agency — is now before Parliament. 


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