Maravi

Mhango urges caution on Zamtel privatization

Mhango urges caution on Zamtel privatization
Written by Florence Bupe
Monday, September 07, 2009 2:49:44 PM

STANDARD Bank South Africa head of Africa Research Group Economics Yvonne Mhango has said privatisation could work positively for the economy if implemented cautiously with the involvement of all stakeholders.

Commenting on the pending partial privatisation of Zamtel, Mhango said if the concept was implemented with care through the proper channels, it could help address the inefficiencies that exist in parastatal institutions.

“There are some pluses that come with privatisation. Getting the private sector involved in the running of key institutions against state management could help address the inefficiencies that exist in state-owned companies,” she said.

She said the government should clarify to the public the steps being taken in the privatisation process, adding that there should be assurance from government over concerns being raised, such as security.

Mhango said a responsible government should not go ahead to privatise an institution if such an action poses serious security risks to the nation.

“Government should gauge the security risks involved in the sale of this entity, if this is one of the concerns being raised by stakeholders,” Mhango said.

“I don’t see why government should privatise an institution if it’s a move that will compromise the security of the state, unless it is a corrupt government that is after making money.”

She hoped the partial privatisation of Zamtel would improve the service delivery in the communications sector.

“As consumers, we need an efficient, aggressive and innovative service, which is something that’s not so present in most parastatals. Privatisation, in most cases, also helps enhance competitions,” she said.

However, Mhango expressed concern at the job losses that may come with the move to privatise the institution.

“The retrenchments that may come with the sale of Zamtel are a big concern. Government has to decide on how to address this negative result of the sale of the institution,” said Mhango.

Government is set to privatise 75 per cent of shares in Zamtel to an equity partner to be settled on later.

Labels: NEOLIBERALISM, PRIVATISATION, YVONNE MHANGO, ZAMTEL

posted by MrK @ 1:52 PM