New policy targets stronger oversight of State enterprises

Nelson Gahadza

GOVERNMENT is stepping up efforts to improve the performance and accountability of State-owned enterprises and parastatals through a new national policy aimed at strengthening governance, enhancing oversight and clarifying ownership structures across the sector.

The proposed National State Enterprises and Parastatals (SEPs) Policy is expected to establish a unified framework for ownership, governance, financing and performance management, bringing greater consistency to the administration of public entities.

The policy will also provide clearer direction on Government’s ownership model, under which commercial State enterprises are being consolidated under the Mutapa Investment Fund (MIF), while non-commercial entities will continue to fall under their respective line ministries.

Deputy Chief Secretary in the Office of the President and Cabinet, Dr Willard Manungo, whose speech was delivered by Chief Director Mrs Anna Tinarwo during a stakeholder validation workshop on the policy in Harare, said the initiative was a crucial step towards addressing longstanding weaknesses within the sector.

“The development of a National SEPs Policy is, therefore, not an academic exercise; it is a strategic imperative,” he said.

The policy is being crafted as Government intensifies efforts to transform State enterprises from organisations that largely depend on public funding into efficient and commercially viable institutions capable of making meaningful contributions to national economic growth.

Over the years, many State-owned enterprises and parastatals have struggled with financial and operational challenges, while governance weaknesses, poor performance and dependence on Treasury support have continued to place pressure on public finances.

Dr Manungo said many of the sector’s difficulties could be traced to the absence of a clear and coordinated national framework to guide the management of State enterprises.

“Zimbabwe’s SEPs landscape has, for too long, been characterised by overlapping mandates, misaligned policies, and fragmented legislative instruments. These structural deficiencies have collectively contributed to underperformance by many SEPs and exposed our nation to significant fiscal risk,” he said.

The move comes amid growing calls for stronger corporate governance and improved accountability within public institutions.

Reports by the Auditor-General have repeatedly highlighted concerns over governance failures, financial irregularities and weaknesses in internal controls across several public entities. At the same time, a number of State enterprises have continued to rely on Government financial support to sustain operations.

“The Auditor-General’s reports over the years have painted a consistent picture of governance deficits, financial mismanagement and a troubling dependence on Treasury bailouts,” Dr Manungo said.

The proposed policy is expected to provide a foundation for improved oversight, clearer performance expectations and stronger accountability mechanisms as Government seeks to improve the efficiency and sustainability of State-owned enterprises and parastatals.