Minister of Finance and Economic Development, Professor Mthuli Ncube has announced the public enterprises reform programme, saying it will bring efficiency in the economy.
Addressing a media briefing after this Tuesday’s cabinet meeting, , Professor Mthuli Ncube said reforms will be instituted on public entities such as ZESA and GMB.
“ As espoused in the Transitional Stabilisation Program (STP) ZESA subsidiaries will be merged into a single vertical integrated company and this means amending the Electricity Act in order to cater for the proposed changes in the structures of ZESA. There is need to engage a reputable Human Resources consultant to advice the Government on the best structure for the rebundled ZESA as Powertel will be hived off ZESA and merged with Zarnet and Africom.” He said.
Minister Mthuli Ncube said Powertel will be hived off ZESA and merged with Zarnet and Africom.
Powertel and Zarnet are both State enterprises, while Africom, founded by Kwanayi Kashangura, as a private company and some how the Goverment bought shares. Powertel and Africom are both internet access providers, while Zarnet was formed by the Information Ministry to provide ICT requirements to government schools and tertiary institutions. It currently holds a 60% equity stake in Telecel Zimbabwe Ltd on behalf of government.
Powertel and Africom have been experiencing problems of their own and have lost market share. Powertel and Africom recorded significant declines in revenue and market share. Powertel’s decline was 4,8% to 8,6% from 12,8 % in Q4 2018 while Africom recorded a 0,69% drop to 2,1% from 2,8 % in Q4 2017.
The Posts and Telecommunications Regulatory Authority of Zimbabwe will be merged together with the Broadcasting Authority of Zimbabwe.