Zimbabwe in big parastatals sell-off

Zimbabwe’s budget deficit hit $1.82 billion or 11.2 percent of GDP in 2017 from an initial target of $400 million.

To cut a budget deficit projected at about 10 percent of GDP this year, Finance Minister Patrick Chinamasa last month said the government would retire all civil servants aged over 65 and close some overseas diplomatic missions.

The Zimbabwe government wholly owns Agribank, IDCZ and ZESA while other companies’ shareholding have been diluted by foreign and local investors.

Air Zimbabwe has debts of more than $300 million and recently has been looking to lease aircraft from Malaysia.

Government owns 51 percent of Olivine Industries while 49 percent is jointly owned by Singapore-based Wilmar International and Midex Group.

In August last year, South African logistics group Transnet won a $400 million tender to recapitalise the government-owned NRZ after a joint bid with Diaspora Infrastructure Development Group, a consortium of Zimbabwean investors living abroad.

Negotiations are yet to take place but Transnet is expected to provide funding to acquire and refurbish wagons, upgrade the company’s information communication technology and signalling systems and increase NRZ’s capacity to move goods.

The state-run pension fund, National Social Security Authority (NSSA) will invest $18 million in meat processor, CSC, in exchange for 80 percent equity. CSC has debts amounting to $25 million.

“We are working on those entities which have been put on the public domain. Some other institutions will be added in the current list,” said Mukupe.- The Source

(629 VIEWS)