State entities have become a liability to the government which has no fiscal space to finance them amid concern that the entities are being mismanaged.

Experts say poor corporate governance is the major setback for the enterprises. 

Deep-rooted corporate governance deficiencies within the public sector continue to be a source of concern to government, with experts citing lack of accountability, transparency and poor expertise as major challenges.

The dominant view emerging from economic players is that the pool of experts chosen to run boards for state entities lacks requisite expertise while certain individuals are recycled on company boards.

Parliamentary Portfolio Committee chairman for Transport and Infrastructure Cde Dexter Nduna notes that all 13 parastatals under the committee are failing to make profit or meet set performance targets.

Corruption continues to be an albatross weighing down viability of state entities according to business analyst Mr Conwell Muzhanye.

Zimbabwe has over 100 state enterprises which at peak in the 90s contributed 40 percent to the country’s gross domestic product.

At present 86 are recording losses while contributing less than 20 percent of GDP leading government to initiative moves to dissolve those that have become irrelevant.