Cabinet applauds parastatal reforms

Source: Cabinet applauds parastatal reforms | The Herald February 20, 2020

Cabinet applauds parastatal reformsInformation, Publicity and Broadcasting Services Minister Monica Mutsvangwa

Elita Chikwati Senior Reporter

Cabinet is satisfied with State enterprises and parastatals reforms being implemented, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa has said.

Minister Mutsvangwa said Cabinet was satisfied with the progress report on the implementation of reforms in State enterprises and parastatals presented by Finance and Economic Development Minister Professor Mthuli Ncube.

“The reform initiatives are being implemented at a time when the majority of the strategic State enterprises and parastatals have been operating sub-optimally as evidenced by their failure to adequately perform and fulfil their mandates.

“Much ground was covered during 2019 towards revamping performance of public entities under the State Enterprises Reform Framework, as articulated in the Transitional Stabilisation Programme (2018- 2020),” she said.

Minister Mutsvangwa said the implementation of the reform strategy for the public enterprises and parastatals had been integrated to include restructuring, privatisation and commercialisation of public entities.

The strategy also includes facilitative and transparent public procurement systems and processes across public entities.

“The reform measures being implemented at public entities are beginning to yield positive results, with the emergence of profit postings and declaration of dividends at some of the State enterprises and parastatals in the recent past, while some have managed to reduce losses.

“The implementation of the above-stated reforms is key in the unlocking of value in the public entities sector. In particular, the current privatisation programme presents lucrative investment opportunities for both domestic and foreign investment, leading to the injection of the much-needed capital for resuscitation,” she said.

Minister Ncube said there has been progress in the State enterprises registering profits and declaring dividends.

He said the agenda for reforming depended on four pillars and some good developments had come out of the pillars.

“The first thing is restructuring, partial privatisation, commercialisation, departmentalisation and liquidation while the second is to improve corporate governance. Pillar three is the remuneration framework and finally facilitative process,” he said.

“The financial performance of those that went into partial privatisation, MMCZ declared a dividend and NetOne is going to declare a dividend to Government. This is a good development coming out of the four pillars,” he said.

Mines and Mining Development Minister Winston Chitando also presented an update on the close cooperation with the Zimbabwe Open for Business Forum, an Independent Organisation formed by young Zimbabweans which has played a key role in marketing the Zimbabwe mining industry at its own cost.

Cabinet was advised of the role played by the Forum at the recent Mining Indaba in Cape Town in early February, 2020, where apart from arranging various investor interface functions, the Zimbabwe Open for Business Forum established for the first time a Zimbabwe Lounge in the national interest.

Cabinet agreed that the Ministry of Mines and Mining Development enter into a Memorandum of Understanding with Zimbabwe Open for Business for cooperation in the promoting mining investment in Zimbabwe.

Cabinet also considered and approved the Manpower Planning and Development Amendment Bill, 2019 which Minister of Justice, Legal and Parliamentary Affairs Ziyambi Ziyambi presented as the chairman of the Cabinet Committee on Legislation.

The amendment will align the Manpower Development Act with the Constitution, under the ongoing Legislative Reform Programme which is being pursued to streamline and elevate the role of tertiary institutions, science and technology institutions as well as professional bodies in the industrialisation and modernisation of Zimbabwe.