Economists have hailed the government’s framework recommending state enterprises reform as it brings economic benefits in the short to medium term.
The government has been consistent in emphasizing the critical contribution expected from state enterprises and parastatal sector towards reviving Zimbabwe’s economic fortunes.
Speaking to the ZBC News, Professor Albert Makochekanwa believes that such a move is consistent with successful economies around the world.
“Parastatal reforms will bring about efficiency and will marginally reduce government costs,” he said.
An economist Mr Paison Tazvivinga said for government to walk the talk on good corporate governance, it has always been a case of when parastatal reforms would be instituted as operational inefficiencies are always a permanent feature on the state enterprises.
“Partial privatisation is going to be a major milestone in bringing accountability to state enterprises,” noted Mr Tazvivinga.
The reform framework process will include mergers, privatisation, partial privatisation as well as disbanding of some state enterprises as the government seeks to streamline and reduce pressure on fiscus by way of funding unproductive parastatals.