Accelerate SOE reforms—CZI

RYAN CHIGOCHE

The Confederation of Zimbabwe  Industries (CZI) has urged the government  to speed up State owned enterprises (SOEs) reforms for them to become viable  as they are key enablers  to industrial growth.

Zimbabwe has over 100 SOEs.

The SOEs used to contribute about 50% to the country’s GDP.

However, they are now contributing less than 10%.

In its 2023 budget consultations CZI said inherent inefficiencies have affected service delivery by state owned entities, in addition to general economic performance and challenges which have eroded the capacity of public enterprises to deliver on electricity, transportation, fertiliser and other related services.

“CZI hopes that the 2023 National Budget will finally see some traction in the issue as industrialisation levels expected under NDS1 require fully functional enablers by ensuring that there is a balancing act on the need of ensuring that utilities tariffs enhance their viability while inefficiencies are addressed so that they are not part of the cost drivers in the tariffs,” it said.

“Our key recommendation (is that the government must) prioritise ensuring that key enablers become fully viable commercial enterprises by the end of 2023.”