Par­tial pri­vati­sa­tion of paras­tatals okay – Do­dia

Daily Nation Newspaper - - HOME NEWS - By SI­MON MUNTEMBA

PAR­TIAL pri­vati­sa­tion of se­lected state owned paras­tatals to at­tract cap­i­tal is ab­so­lutely a good idea be­cause most of them have very good and use­ful in­fra­struc­ture but lack re­sources, Lusaka-based econ­o­mist Yusuf Do­dia has said. Mr Do­dia said if Govern­ment was to stim­u­late eco­nomic growth to help ad­dress Zam­bia’s fi­nan­cial chal­lenges, it should look for de­vel­op­ment part­ners that would not come in to ex­ploit the peo­ple of Zam­bia by be­ing a monopoly. He said it was also im­por­tant for Govern­ment to en­sure that the board of di­rec­tors of all the state owned parastals be in­de­pen­dent for them to op­er­ate pro­fes­sion­ally and prof­itably. Mr Do­dia was re­act­ing to calls by Party of Na­tional Unity (PNU) pres­i­dent Highvie Ha­mududu who urged Govern­ment to par­tially pri­va­tise se­lected state owned en­ter­prises (SOEs) to at­tract cap­i­tal, trig­ger eco­nomic growth to help ad­dress Zam­bia’s debt sit­u­a­tion, among other things. Speak­ing when he fea­tured on ZNBC’s ‘the Sun­day in­ter­view,’ Mr Ha­mududu, an econ­o­mist, said un­der the cir­cum­stances, there was need to par­tially sell some non-per­form­ing SOEs cit­ing ZANACO, which now posted div­i­dends to Govern­ment as a suc­cess story of pri­vati­sa­tion. Mr Ha­mududu said com­pa­nies such as ZCSC Life In­sur­ance, In­deni oil and Zam­bia Rail­ways Lim­ited among oth­ers should be par­tially be off­loaded to the pri­vate sec­tor to at­tract in­vest­ments that widened rev­enue col­lec­tion, cre­ated jobs and in­creased cit­i­zen’s spend­ing power, thereby stim­u­lat­ing eco­nomic growth. Mr Do­dia who agreed with Mr Ha­mududu’s sug­ges­tion, how­ever, said it was im­por­tant for Govern­ment to have part­ners in de­vel­op­ment that would fol­low the vi­sion of the in­sti­tu­tion they would be in­vited to in­vest in. Mr Do­dia said de­vel­op­ment part­ner­ship should not just look at prof­its but qual­ity of em­ploy­ment, tech­nol­ogy, skill trans­fer and should look out for the best in­ter­est of the com­pany.

Yusuf Do­dia

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