SOEs must reposition to face competition – Commerce PS

By MUKOSELA KASALWE THERE is need for aggressive private sector driven interventions to reposition some firms under the Industrial Development Corporation that are facing stiff competition, says Commerce, Trade and Industry Permanent Secretary Kayula Siame.

Ms Siame said this would entail the bringing in of carefully selected strategic equity partners with the potential to bring the technical competence of international best practices and capital injection.

She said it was important to have a more focused approach to industrial development within the parameters of the IDC mandate aligned with the strategic objectives of the National Development Plan.

Ms Siame was speaking when she appeared before the Committee on Parastatal Bodies which was chaired by Msanzala Member of Parliament Peter Daka.

Ms Siame emphasised the need to create strong synergies and enhanced collaboration between IDC and the relevant line ministries as well as agencies for enhanced industrialisation.

“There is need for aggressive private sector driven interventions to reposition some of the State Owned Enterprises that are facing stiff competition,” she said.

Ms Siame said the government has placed all State Owned Enterprises under the Companies Act while Statutory Bodies established under the Acts of Parliament are met under IDC.

Ms Siame said the IDC management has ensured that all State Owned Enterprises maintain audited book of accounts and that the IDC has engaged private auditors to audit State Owned Enterprises which have a backlog of unaudited accounts.

Ms Siame said the role of the ministry would be to provide policy and guidance on investment, and industrialisation policies.

She said IDC was expected to implement its activities in cooperation with the ministry because the conglomerate could not create its own trade, investment and industrialisation policies.