By Caroline Washaya Moyo
The Government is stepping up efforts to reform Zimbabwe’s State Enterprises and Parastatals (SEPs) through the development of a comprehensive National SEPs Policy aimed at improving governance, strengthening accountability and enhancing commercial sustainability.Speaking at an important Stakeholder Validation Workshop, a Government representative said the development of the policy marked a significant milestone in Zimbabwe’s public sector reform agenda.The policy seeks to address long-standing challenges affecting State Enterprises and Parastatals, including overlapping mandates, fragmented legislation, inconsistent ownership models and weak governance structures.“For too long, Zimbabwe’s SEPs landscape has been characterised by overlapping mandates, misaligned policies and fragmented legislative instruments,” the official said.“These structural deficiencies have collectively contributed to underperformance by many SEPs and exposed our nation to significant fiscal risk.”The address noted that reports by the Auditor-General have consistently highlighted governance deficits, financial mismanagement and continued dependence by some State Enterprises and Parastatals on Treasury bailouts.While Government has undertaken sector-specific and institution-specific reforms over the years, the absence of an overarching national policy has resulted in inconsistencies in ownership models, corporate finance frameworks, governance structures and performance expectations.The Government has, however, reaffirmed its commitment to addressing these challenges as part of broader public sector reforms.“The reforms underway are designed to transition State firms from their long-standing reliance on Treasury support to commercially sustainable and high-performing entities,” the official said.The proposed National SEPs Policy will provide an overarching framework to bring coherence to ownership and governance models across the sector.It is also expected to establish clear performance expectations and accountability mechanisms to ensure that State Enterprises and Parastatals are managed with commercial discipline and professional rigour.The policy will further seek to strengthen legislative, regulatory and institutional frameworks governing SEPs, particularly in areas of corporate governance, corporate finance and performance monitoring.A key component of the proposed framework will also provide clarity on Zimbabwe’s hybrid ownership model.Under the model, the shareholding of some commercial State Enterprises and Parastatals has been centralised under the Mutapa Investment Fund, while non-commercial shareholdings remain under respective Government Ministries.The policy is expected to help strike an appropriate balance between public interest objectives and commercial viability.The Stakeholder Validation Workshop follows months of analytical work undertaken by consultant Mr Andreas Bertoldi, as well as extensive consultations with stakeholders from Government and other sectors.Draft reports, including a situational analysis and the proposed National SEPs Policy, have been produced to guide the validation process.The official emphasised the importance of stakeholder participation, saying policies were more effective when those responsible for implementation and those affected by them were actively involved in their development.“A policy is only as good as the process that produces it,” the official said.“This is your opportunity to shape a policy that will define the future of Zimbabwe’s SEPs sector.”Participants were urged to scrutinise the draft reports, challenge findings where necessary and provide constructive recommendations based on their practical experiences.The reforms are part of a broader Government agenda to strengthen oversight mechanisms, improve performance management, reinforce legislative frameworks and enhance accountability among State-owned enterprises.The Mutapa Investment Fund was also highlighted as an increasingly important component of Zimbabwe’s broader State Enterprise reform architecture.“The policy we are developing today will provide the overarching framework within which all these reforms will be coordinated and aligned,” the official said.Government, through the Office of the President and Cabinet and the Department responsible for Public Enterprises and Parastatal Reforms, pledged to continue providing strategic leadership and policy direction to ensure the success of the initiative.The consultant, Mr Bertoldi, and the State Enterprises Restructuring Agency (SERA) were commended for their work and commitment to the project.The Government said the ultimate goal was to build a State Enterprises and Parastatals sector that is well-governed, commercially sustainable and capable of making a meaningful contribution to Zimbabwe’s economic development.“The task before us is significant, but the prize is even greater: a SEPs sector that is well-governed, commercially sustainable, and capable of making a meaningful contribution to Zimbabwe’s economic development and the well-being of all its citizens.”
