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Delma Lupepe

Prosper Ndlovu, Business Editor
THE government should offload part of its shareholding in ailing parastatals to private partners to facilitate their quick turnaround for the benefit of the economy, businessman Delma Lupepe said.

Most state-owned enterprises lead the pack in poor business performance despite repeated support from the government.

Only five out of the more than 70 parastatals have this year declared dividends to the major shareholder, according to Treasury.

These include POSB, TelOne, IDBZ, NetOne and the Zimbabwe Mining Development Corporation.

In an interview in Bulawayo yesterday Lupepe said meaningful economic growth was hinged on the revival of key parastatals, which he said have a quick winning effect on downstream industries.

He said the downfall of giant parastatals such as the National Railways of Zimbabwe (NRZ), Hwange Colliery Company Limited (HCCL), Cold Storage Company (CSC), Zisco Steel now New Zimsteel, and Zesa, since the turn of the millennium, led to the collapse of many feeder companies along the value chain.

“Five key industries form the bedrock of this country’s economy and these are NRZ, CSC, HCCL, Zesa and Zisco. All the other companies survive on the viability of these.

“My view is that the government has no business in running businesses. Its (government) business, rather, is to facilitate an environment for businesses,” said Lupepe.

“Let the government bring in private partners and be prepared to part with some of its shareholding in these parastatals to facilitate their revival.”
In a value chain production system, he said, dozens of companies including the upcoming small to medium enterprises were struggling to operate profitably because of the limping giant firms.

Lupepe said most businesses would continue to suffer in the absence of key enablers such as reliable energy, bulk transport, viable steel industry and agro-processing sector.

The government has said it cannot continue to sustain operations of failing parastatals given the tight fiscal space with Finance Minister Patrick Chinamasa last week warning those that fail to operate viable will be closed.

The Agricultural and Rural Development Authority (ARDA), is gradually regaining its footing through successful partnerships in the running of its farms across the country.

Lupepe applauded Minister Chinamasa for taking realistic and bold measures to reposition the country for economic growth and urged all Zimbabweans to support him.

“We need to go back to basics in order to revive this economy. Unless we do that everything we say is just lip service. Chinamasa’s position on parastatals is the strongest statement from the government this year.

“As businesses we also applaud his re-engagement efforts with global financiers and the international community. This will help us as a country in attracting fresh investment. Chinamasa should be given all the support by his colleagues in government and everyone,” said Lupepe.