Zimbabwe plans to sell five of its state-owned corporations in an effort to cut spending and raise funds for its treasury. Some of the companies earmarked for sale are; telecommunications firms – NetOne, Telecel Zimbabwe, Zimpost, TelOne and the government-owned bank POSB.
The country’s Finance minister said that the sale is expected to raise $350 million (~KSh35 billion). The government of Zimbabwe is on a privatization journey for most of its loss-making state corporations. The entities often rely on government bailouts which are costly to the economy.
Zimbabwe’s President Emmerson Mnangagwa faces the tough role of reviving the country’s economy after it was run down by his predecessor, Robert Mugabe.
At the moment, the country is experiencing a severe shortage of US dollars which it uses as its currency. Zimbabwe is also suffering from food shortage due to prolonged drought which has left more than 5 million people in need of food assistance.