State firms and parastatals poorly managed says Moyo

State Enterprises and Parastatals Minister, Gorden Moyo has admitted that state-owned firms are performing below expectations owing to poor management structures.

State enterprises and parastatals have been operating at a loss for the past four years thereby failing to attract the much needed investors under the privatisation programme.

Responding to questions after addressing delegates at the second day of the Zimbabwe-China Match-Making Seminar in the capital, Moyo admitted that state-owned firms are operating at a loss owing to poor management structures.

Zimbabwe Investment Authority Chief Executive Officer, Richard Mubaiwa said China has remained among the major investors in the country considering the number of investment projects approved from the Asian country.

Investment from the China is spearheaded by state-owned firms as they are the most vibrant companies, while local firms are struggling to recapitalise with capacity utilisation tumbling to low levels.

Zimbabwe has 78 state-owned firms with a capacity to contribute 40% to the country's Gross Domestic Product if fully operational.