THE Industrial Development Corporation (IDC) board is by March expected to receive a report on the situational analysis being conducted on state -owned enterprises (SOEs) to determine whether to maintain 100 percent Government shareholding, or invite private equity.
IDC acting chief executive officer Mateyo Kaluba said in an exclusive interview last Friday that the situational analysis is meant to understand what need to be fixed.
“We are still getting facts from the SOEs and that is when we will know what options are available. By end of first quarter 2017, a report will be presented to the board for determination on whether to continue with 100 percent government shareholding, invite private sector, or to dispose of completely,” Mr Kaluba said.
He also said IDC will not take over operations of SOEs but will transform the parastatals into viable and profitable entities that must start declaring dividends to the treasury.
“Sometimes, the ministries do not do what they are supposed to, to support the SOEs…As IDC, we are not going to run affairs of the SOEs but we represent the interest of shareholders including issues of governance such as having a competent and effective board [to be appointed by IDC board], so that dividends start flowing to shareholders,” he said.
He, however, said some SOEs are making losses not because of mismanagement but due to inadequate support from line ministries that are structured for policy-making and not operations.
Mr Kaluba said IDC’s interest is to create a platform to spearhead industrialisation for job and wealth creation, and not compete with the private sector.
IDC’s mandate is to play a catalytical role in deepening and supporting Zambia’s industrialisation capacity to promote job creation and domestic wealth formation across key economic sectors.
“When we see appetite of the private sector, we create opportunities that tap into natural resources to create wealth and jobs, and not competing with private sector. IDC’s mandate is to supplement them like we did with the solar projects to be established in Lusaka.
“Of course, IDC will invest some funds to become minority shareholders but the objective is to facilitate private sector investment,” he said.