Cabinet approves merger of 3 oil firms

Source: Cabinet approves merger of 3 oil firms | The Herald 31 OCT, 2019

Cabinet approves merger of 3 oil firmsInformation, Publicity and Broadcasting Services Minister Monica Mutsvangwa (centre) addresses a post-Cabinet briefing in Harare yesterday. She is flanked by Chief Secretary to the President and Cabinet Dr Misheck Sibanda (left) and Finance and Economic Development Minister Mthuli Ncube. —Picture: Justin Mutenda

Nesia Mhaka Herald Correspondent

Cabinet has approved the merger of three oil companies – Petrotrade, Genesis Energy and CMED’s retail division – to enhance their value ahead of negotiations with prospective partners.

This was said by of Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa while addressing journalists after Tuesday’s Cabinet meeting.

“Cabinet received and approved proposals for the partial privatisation of Petro-trade, as presented by the Minister of Finance and Economic Development (Professor Mthuli Ncube), being part of the ongoing State Enterprises reform programme,” said Minister Mutsvangwa.

“Under the proposals, Petrotrade and Genesis Energy, together with CMED’s fuel retail component, will be merged to enhance the resultant entity’s value, attractiveness and competitiveness ahead of negotiations with prospective strategic partners.” Government has a programme aimed at reforming State Enterprises to improve their performance and reduce reliance on fiscus for their survival.

Some of the companies will be listed on the stock exchange, while others will be partially privatised and some will be merged.

Minister Mutsvangwa said Cabinet received an update on the Second Phase of the Implementation of Ease of Doing Business reforms, which was presented by Prof Ncube.

“The reforms are based on the 10 World Bank Doing Business indices, namely: Starting a business; construction permits; access to electricity and other public utilities; registering property; access to credit; protecting minority investors; payment of taxes; facilitation of cross-border trade; enforcement of contracts; and resolution of insolvency,” she said.

Minister Mutsvangwa said to date, President Mnangagwa has approved eight of 16 legislations which required significant amendment.

“To give due prominence to the reforms, Cabinet agreed to set up an Inter-Ministerial Cabinet Committee or Task Force of key line Ministries to superintend the Ease of Doing Business reform programme in order to transform the country’s business environment, promote local and foreign investment, create wealth and jobs and improve overall economic performance,” she said.

“You may be aware that we recently rose up the World Bank Competitive Index by 15 places as a country, from 170 out of 190 countries in 2015 to the current 140.”

COMMENTS

WORDPRESS: 1
  • comment-avatar
    Cynical 12 months ago

    Partially privatised means some Minister will have his fingers in the pie.