Latest News Editor's Choice


News / National

Zesa re-bundling part of parastatals reforms, says Chiwenga

by Staff reporter
25 Apr 2019 at 07:02hrs | Views
THE re-bundling of Zesa and merger of its five previously separate entities into a single integrated company will cut overhead costs and boost power generation efficiency, Vice President Constantino Chiwenga said yesterday.

Government first unbundled Zesa in 1997 and later in 2006. The unbundling created five companies namely Powertel Communications, Zimbabwe Electricity and Transmission Distribution Company (ZETDC), Zimbabwe Power Company (ZPC), Zesa Enterprises (Zent) and Zesa Holdings.

Further, Government set up the Rural Electrification Agency (REA) and the Zimbabwe Regulatory Authority (Zera). Addressing delegates at the Zimbabwe International Business Conference in Bulawayo, Chiwenga said the re-bundling of Zesa was part of Government's prioritisation of State Enterprises and Parastatals reforms.

"The re-bundling of Zesa into a single company with one board will, by cutting overhead costs, increase efficiencies to ensure viability, boost power generation capacity and enhance expansion of the local power supply network," he said.

"This is part of the Government's State Enterprises and Parastatals reforms and this is Government's priority. So far five public enterprises, namely TelOne, NetOne, Telecel, Zimpost and POSB have been targeted for immediate reform, with the identification and engagement of transaction advisors already in progress," said Chiwenga.

"The desired result of the reforms now underway is state enterprises, which are accountable, transparent, efficient, effective and viable, thereby contributing their fair share to Government's efforts to achieve strong, sustainable and inclusive economic development that leaves no one behind." Chiwenga also told delegates that Cabinet had approved the unbundling of the Grain Marketing Board (GMB), which has been split into a Strategic Grain Reserve Unit (SGR) and a commercial entity called Silo Industries.

The SGR unit focuses on building and maintaining a strategic grain reserves for the country as social insurance, while the commercial entity is expected to operate profitably.

"Further to this, the capitalisation and restructuring of the Industrial Development Corporation of Zimbabwe (IDCZ) now underway will see it revert to its original role as Development Finance Institution (DFI), with a sole mandate to mobilise and provide funding for industrial development," said Chiwenga.

He said the transformation of the IDCZ will benefit industry by providing affordable financing for retooling in line with the goals of the National Industry Development Policy.

The Vice President said fiscal consolidation through containment of the fiscal deficit to sustainable levels was a key objective of both the Transitional Stabilisation Programme and Vision 2030. He said the Government was forging ahead with re-engaging of the international community in order to normalise relations.

"The dialogue and re-engagement initiatives are in fulfilment of the undertaking made by President Mnangagwa," said Chiwenga.

Source - chronicle

Subscribe

Email: