Parastatal reforms begin
GOVERNMENT has started parastatal reforms in a development set to result in dissolution, liquidation, absorption or mergers of Stateowned entities as President Mnangagwa moves to cut expenditure by enhancing operational efficiency.
Notable reforms include Zesa Holdings where boards of its three subsidiaries will be reduced to one, and the Broadcasting Authority of Zimbabwe (BAZ) whose board will merge with the Posts and Telecommunication Regulatory Authority.
Addressing journalists in Harare yesterday, Finance and Economic Development Minister Patrick Chinamasa said Cabinet on Tuesday deliberated on the framework on State and enterprises reforms and took a decision to reform them.
He said a decision on Air Zimbabwe had been deferred to allow for further discussions.
On Zesa, Minister Chinamasa said boards of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Zimbabwe Power Company (ZPC) and Zesa Enterprises would be dissolved and a single board established to take charge of the power utility.
“The Zesa board will be allowed to engage strategic partners under ZPC operations where necessary,” he said.
“The strategic and Zesa specific activities of Powertel will be incorporated under ZETDC, whilst excess telecommunication capacity will be included in the merger between Zarnet and Africom.”
Some of the entities would be reduced to departments in their parent ministries.
They include New Ziana, which becomes a department in the Ministry of Information, Media and Broadcasting Services, with the National Indigenisation and Economic Empowerment falling under the Ministry of Industry, Commerce and Enterprise Development as a department.
Others entities to be absorbed by parent ministries include the Board of Censors, the National Liquor Licensing Authority, the National Arts Council and the Lotteries and Gaming Board.
The Special Economic Zones Authority, the Zimbabwe Investment Centre, ZimTrade and Joint Venture Unit will be merged to become a one-stop shop for potential business investors.
“The Zimbabwe National Road Administration will remain under the Ministry of Transport and Infrastructural Development, but with a focus on revenue collection and not on
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commitment to open up and develop its economy.
“Zimbabwe is not only open for business, but clearly you mean business, Mr President,” she said.
For Rwanda to make significant progress, she said, it stressed unity, accountability and aiming high.
“We united our people because we came from a history of division.
“The first priority was to ensure that the Rwanda that was being built was united; that everyone could see themselves in.
“The youths, women, educated, rural and urban and all those that came from outside the country to be part of the re building. So unity was very important,” she said.
“The second thing President (Kagame) said was thinking big.
“Even though we were coming from the lowest place you could imagine, even though we had a divided past, even though we had challenges such as being a landlocked country with few skilled people, the point was how could we think about that and aim high.
“How can we think Rwanda can achieve what other developed countries can achieve.
“Thinking big changed our mindest and trained us.”
She said Rwanda also established strong institutions to enhance accountability.
“Accountability ensured leaders remained accountable to the citizens and the citizens remained accountable to the leaders,” she added.
Mr Hategeka told the same meeting that central to Rwanda’s transformation was the private sector, including running the public service as efficient as the private sector.
“Our President (Kagame) ran the country like a company and so there were performance contracts.
“It’s not exclusive to enterprises and corporations, it also works in the public service. And every ministry and government employee at the beginning had to sign performance contracts that contained the priorities that impact positively on the lives of the people, and was signed by the President,” he said.
Mr Hategeka said there was also deliberate effort for Government, civil society, the private sector and citizens to work around an agreed agenda and national vision.
“The national dialogue brought accountability. It was a moment of truth,” he said.
Rwanda has also made significant progress towards gender inclusivity, with 64 percent of its leadership being women. The Rwanda Development Board is a one-stop centre responsible for making instant decisions on investment inquiries across all sectors of the economy and as a result, it only takes six hours for one to start a business in Rwanda.