Parastatal resuscitation urgently needed

ANALYSTS have raised concerns over slow-paced approach in resuscitating key state enterprises and parastatals which complement the smooth operations of industry at a time local industry is steadily improving.

Following the commencement of various projects under the Special Economic Zones promulgated by Government, state enterprises have a leading role to play in ensuring services to economic activities in these economic hotspots.

Last year, Government prioritised 10 key parastatals that speak to the urgent needs of the industrialisation agenda and resuscitation of the economy such as the Cold Storage Commission, National Railways of Zimbabwe, Grain Marketing Board and Air Zimbabwe among others but progress on these projects are slow.

Industrialists have been clamouring for the revival of the railway company which at its peak in the 1990s efficiently transported huge volumes of goods cost effectively.

The absence of vibrant railway systems has been factored as a major cost drive for local producers in the distribution of finished products while other parastatals have not risen to the party to play similarly effective roles in their respective sectors.

Speaking to Manica Post Business recently, Buy Zimbabwe economic analyst Mr Kipson Gundani said it was crucial for Government to urgently prioritise reviving some of the parastatals as they were economic enablers complementing private sector investment.

“We are seeing a slight improvement in investment projects in the country, thanks to Government interventions to lure investors but what is worrying is that we are falling short of doing the same as far as reviving parastatals like NRZ is concerned.

“This is crucial to local industries. They are enablers to the whole industrialisation plans. Parastatals provide necessary infrastructure for private players to utilise in their operations,” he said.

This comes at a time when the construction industry has seen two cement producing plants completed and commence production recently which will need efficient railway network connection for distribution at competitive cost.

The US$30 million Livetouch Investments cement plant in Redcliff, Kwekwe started production this week following the commissioning of the US$82 million state-of-the-art PPC Msasa plant last month by President Mugabe.

PPC general manager Mr Kelibone Masiyane on the sidelines of the commis- sioning of the Msasa plant told Manica Post Business that the Bulawayo plant was facing unsustainable costs in transporting cement by road to meet demand in northern parts of the country as railway transport was critical.

Government has been searching for suitable investors to partner with in reviving some of the key parastatals like the NRZ.

Analysts have however, called for other resource sourcing mechanisms to improve dilapidated infrastructure in these entities such as Public-Private Partnerships as the case with the GMB and Grainmillers Association arrangement in repairing the country’s damaged silos ahead of a good harvesting season.

According to Grain Millers Association chairman Mr Tafadzwa Musarara, the association has sourced US$8 million loan extended to Government for the rehabilitation and repair of Grain Marketing Board silos.

The silos which have not been properly serviced for many years’ pose a threat to the national yield as the nation has lost a substantial amount of grain through improper handling and storage.

The same can be said of the struggling national airliner, Air Zimbabwe which is facing a myriad of viability challenges.