Mugabe bemoans under-performance of parastatals

Published: 07 September 2017

The President Robert Mugabe has expressed deep concern over the continued underperformance of state enterprises and the parastatal sector whose current contribution to the national gross domestic product, GDP, is around 11 to 12 percent down from its peak of 40 percent.

The President said the parastatals should perform or go under.

Mugabe said this while addressing captains of industry and commerce at State House in Harare today.

The President and the First Lady Dr Grace Mugabe met captains of industry and commerce at State House to get an update on the impact of some government policies and pieces of legislation that the government has introduced to expedite economic recovery and industrialisation in the country.

The interface with captains of industry and commerce was also a platform for sharing challenges and suggestions on further pushing economic growth and overcoming obstacles through the implementation of ZIM ASSET and the ten point plan.

Mugabe said parastatals should perform or close shop while the private sector said the entities could enter into partnerships with the private sector or transform to private businesses.

The President once again pointed out the scourge of corruption as an impediment to the attainment of high-level economic growth and revenue mobilisation and investment generation and called for a collective approach to addressing the challenge.

A code of conduct and ethics for senior officials in public service will soon be introduced by the government while the Anti Corruption Commission is spearheading the anti corruption campaign as set out under the relevant legislation.

The President also bemoaned the 12 percent interest on bank loans saying the government is continuously engaging banks and microfinance institutions to ensure the provision of affordable credit in order to boost the productive sectors of the economy.

Mugabe welcomed the establishment of the special economic zones act and the board saying the entity together with the national investment policy being formulated should provide impetus to both domestic and foreign direct investment in Zimbabwe.

The President began his address by hailing the country's success in the implementation of command agriculture which has seen the country regaining its bread basket status in one season thanks to the cooperation between government and the private sector.

He said the interface between government and the private sector is a demonstration of the two sides' commitment to the country's economic turn-around through the implementation of ZIM ASSET and the ten point plan.
- zbc

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