New Zimbabwe.com

TSP reforms to fast track, NetOne, POSB and TelOne privatisation

By Alois Vinga

THE Transitional Stabilisation Program (TSP) launched Friday afternoon by Finance Minister Mthuli Ncube will fast track the privatisation of the Post Office Savings Bank, NetOne and TelOne in a move aimed at aligning the entities to business models.

Briefing the media soon after the launch ceremony, Ncube said the programme will outline measures to be taken to address institutional reforms to achieve growth and development.

There shall be strict budget and expenditure controls, focus to improving service delivery in the public enterprises, eradication of rent seeking behaviour and improve the ease of doing business.

“As a result, we will be fast-tracking the privatisation of TelOne, POSB and NetOne and this must be done within the next six months.

“Information on the offer will be publicly advertised both locally and globally in order to attract the best investors who bring the right technology and make sure that Foreign Direct Investment flows into the country,” Ncube said.

He also noted that the country’s financial sector will be developed through carrying out legislative reforms that will see access to capital for Small to Medium Enterprises improving. Methods like the use of movable property as collateral will be used.

The economic program also aims at improving the ease of doing business by reducing the number of licences needed for one to run a business.

Currently, a total of 23 licences are required while most countries in the region only have less than ten.

Ncube noted that government will soon resolve payment backlogs owed to airlines that have since abandoned the Harare route.

In a bid to improve tourism due to its foreign currency earning potential, a tourism revolving fund shall be established.

Among the measures, restrictive Visa requirements shall be also be scrapped off to improve arrivals into the country.