Hamududu Backs Calls For A Partial Privatization Of All Loss Making Parastatals

By Enoch Lusoke

 

Economist, Highvie Hamududu has backed calls for a partial privatization of all loss making parastatal companies under the industrial development corporation –IDC-for recapitalization and to save them from total collapse.

Last week, the policy monitoring and research center –PMRC- proposed that the government evaluates all under-performing state-owned parastatals under the IDC and develop a privatization strategy in order to promote private-sector led economic growth.

Speaking to phoenix business, Mr Hamududu explains that a partial privatization of the underperforming parastatals at a 50-50 share percentage rate is the only way to recapitalize the companies which currently pose a fiscal burden on the treasury and add no value to the economy.

And private sector development association chairperson, Yusuf Dodia agrees that there are some parastatal companies that need to be hived-off due to their inconsistencies in making profits, but stresses the need to ensure that government creates a conducive business environment if it is to engage the private sector in the operations of parastatal companies.

PHOENIX FM NEWS

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