(DAILY MAIL) State warns loss-making parastatals

State warns loss-making parastatals
By NKWETO MFULA

GOVERNMENT has reiterated that it will not protect loss-making parastatals from business competition. Minister of Commerce, Trade and Industry, Felix Mutati, said in Ndola on Sunday that Government expected parastatals to be competitive so that they could declare dividends. Mr Mutati was speaking during the Zambia State Insurance Corporation (ZSIC) cocktail party to celebrate its 40th anniversary.

“We are not going to protect any loss making company that will want to do business with Government and we do not want them ask Government to shield them,” he said. Mr Mutati called on parastatal companies to be proactive by coming up with business products that would make them profitable. He commended ZISC management for keeping the company focused and for rejuvenating the company’s services.

Mr Mutati said the separation of life and general insurances should result into the corporation becoming a market leader in the insurance industry.

“Only a few years ago, this company was a dying baby but you have managed to turn the corporation into a profit making company,” he said.

And ZISC managing director, Irene Muyenga said the insurance market has become more stable and active as the number of insurance companies was on the increase.

Ms Muyenga said innovations in the insurance industry was evident through new insurance products.

She said the General insurance business and the Life and Pension Products would be introduced as independent entities before the end of this year.

“We are hopeful that by the end of December 2008, the separation process will have been completed,” he said.