24/06/2025
I for one (as a ZANU PF Cadre and Activist), I believe Joshua Maponga is onto something and his argument is very sound.
Here's a comprehensive argument for transforming Zimbabwean government and its ministries into business entities to manage State-Owned Enterprises (SOEs) and optimize resource utilization:
Current Challenges
Zimbabwean economy is rich in natural resources, including minerals like platinum, diamonds, gold and chrome. However, the country faces significant challenges, including:
1. Limited economic benefits: Despite its vast resources, Zimbabwe struggles to translate these assets into sustainable economic growth and development.
2. Foreign dominance: Foreign companies, including Chinese entities, often extract and export Zimbabwean resources with limited benefits accruing to the local economy.
3. Taxation: The current taxation regime may not capture the true value of these resources, with some companies paying as little as 15% tax on their profits.
Benefits of Government-as-a-Business Entity Model
By transforming the government and its ministries into business entities, Zimbabwe can:
1. Maximize resource value: By managing SOEs, the government can directly participate in the extraction, processing and export of natural resources, capturing a larger share of the value chain.
2. Increase revenue: By operating as a business entity, the government can generate revenue through dividends, taxes and royalties, reducing dependence on taxation alone.
3. Improve efficiency: Business-oriented management can lead to more efficient operations, reducing costs and increasing productivity.
4. Enhance transparency and accountability: As a business entity, the government can implement robust financial reporting and governance structures, reducing corruption and ensuring accountability.
5. Citizen benefits: By generating revenue through SOEs, the government can invest in public services, infrastructure and social programs, benefiting citizens directly.
Key Features of the Proposed Model
To implement this model, the following features could be considered:
1. State-Owned Enterprise (SOE) structure: Establish SOEs to manage specific sectors, such as mining, energy or agriculture, with clear objectives and performance metrics.
2. Commercialization: Operate SOEs on a commercial basis, with a focus on profitability and efficiency.
3. Professional management: Appoint experienced professionals to manage SOEs, with incentives tied to performance.
4. Transparency and accountability: Implement robust governance structures, including independent boards and regular financial reporting.
5. Revenue sharing: Distribute revenue generated by SOEs to citizens through dividends, social programs or infrastructure development.
Potential Outcomes
By adopting this model, Zimbabwe can:
1. Increase economic growth: By capturing a larger share of the value chain, the government can generate more revenue, driving economic growth and development.
2. Reduce poverty: By investing in public services and social programs, the government can reduce poverty and improve living standards for citizens.
3. Enhance economic sovereignty: By managing its own resources, Zimbabwe can reduce dependence on foreign companies and assert greater control over its economy.
4. Improve international competitiveness: By operating SOEs on a commercial basis, Zimbabwe can increase its competitiveness in the global market, attracting investment and driving growth.
Challenges and Mitigation Strategies
While implementing this model, potential challenges include:
1. Capacity building: The government may need to develop new skills and expertise to manage SOEs effectively.
2. Corruption: Robust governance structures and transparency measures can help mitigate corruption risks.
3. Political interference: Ensuring a clear separation between political and commercial functions can help minimize political interference.
By addressing these challenges and implementing a well-designed government-as-a-business-entity model, Zimbabwe can unlock the true value of its resources, drive economic growth and improve the lives of its citizens.
