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(NEWZIMBABWE) Mutambara: Give up parastatals

COMMENT - Welcome to the true face of neoliberalism: neocolonialism. Ask China to give up it's parastatals, or Taiwan, Korea or Japan.

Mutambara: Give up parastatals
by Staff Reporter
23/07/2010 00:00:00

DEPUTY Prime Minister Arthur Mutambara has led a team of ministers and senior civil servants to the United Kingdom on a charm offensive to woo investors in the energy, water, transportation and communications sectors.

Mutambara spoke at an infrastructure development and investment conference in London on Thursday, saying Zimbabwe was open for business to investors who want to “take the plunge”.

But Mutambara warned that the country must also address concerns around security of investments, property rights as well as “unattractive incentives and concessions” – reference to the country’s indigenisation policies and tariff interventions by ministers.

Accompanied by Water Resources Minister Sam Sipepa Nkomo and Public Works Minister Joel Gabbuza, Mutambara said it was time the Zimbabwe government gave up ownership of non-performing parastatals to private investors to improve service delivery.

“There are those who argue that owning strategic but bankrupt entities like Air Zimbabwe, the National Railways of Zimbabwe, the dysfunctional power utility ZESA, majority shares in Hwange or Zisco, all the dams and water systems, all the roads and railways systems, government buildings and vehicles is protecting our sovereignty,” Mutambara said at a conference in London organised by the Zimbabwe Institute of Engineers.

“I will tell you what sovereignty is. Sovereignty is delivering adequate, clean and affordable water, reliable and affordable power, safe and efficient roads and railways, a high quality and profitable airline, enough coal to our industries, profitable mining of all minerals, processing and manufacturing, moving up the global value chain and productivity and food security on land.”

Mutambara said Zimbabwe needed to implement “smart and effective regulations” that “allow the free market to flourish”.

“The role of the state should be to create an enabling environment and providing infrastructure and services. Zimbabwe is a low cost producer and investors will find we are cost competitive, although we need to do more by copying success stories in China, Singapore and Malaysia,” Mutambara said.

Minister Nkomo made a case for investing in Zimbabwe’s water sector, but also warned that “socialist government thinking” should change.

“We must begin to see water as a commodity not a God-given resource. People are happy to open taps and let the water run, but we forget that behind that tap is a pipe which costs money,” Nkomo said.

The minister said Zimbabwe needs about US$1,6 billion investment in the construction of 24 new dams to add to the 2,200 water sources around the country, and a further US$441 million to complete 12 new dams already under construction.

“Zimbabwe’s dam sites around the country have the potential to harness 47,231 million cubic metres but we have managed to develop only 11,746 million cubic metres – representing about 25 percent,” Nkomo said.

“The development of water resources will contribute to reinforcing development potential of Zimbabwe by providing improved water supply infrastructure and adequate water supply to industries, tourism, mining, expand irrigation potential and generate hydroelectric power. We require huge financial capital outlays.”

Meanwhile Mutambara, Education Minister David Coltart, Nkomo and Gabbuza are set to address a public meeting in London on Saturday night.

The meeting, convened by the Zimbabwe Diaspora Focus Group (ZDFG) -- a coalition of Zimbabwean organisations based in the UK – will be held at the Lumen United Reform Church from 6PM. [Directions: 88 Tavistoock Place, London WC1H 9RS. Nearest Tube Station: King’s Cross].

Labels: ARTHUR MUTAMBARA, CORRUPTION, NEOCOLONIALISM, NEOLIBERALISM, PARASTATALS, PRIVATISATION

posted by MrK @ 2:31 PM