Finance minister, Musokotwane, blames poor performance of state-owned enterprises on weak governance, management

Finance and National Planning Minister, Situmbeko Musokotwane, has attributed the poor performance of State-Owned Enterprises (SOEs) to weak governance and management structures, as well as ineffective supervisory and regulatory frameworks.

Speaking at the launch of the revised SOE policy at Mulungushi International Conference Centre in Lusaka on Friday, Musokotwane said these challenges had persisted despite past efforts, including the introduction of the 2012 SOE policy and the incorporation of the Industrial Development Corporation (IDC) in 2014.

“In part, the poor performance of these enterprises stems from inappropriate governance and management structures as well as ineffective supervisory, monitoring, and regulatory frameworks,” he stated.

He explained that the government had revised the SOE policy to address these shortcomings and improve oversight, enabling SOEs to operate profitably and effectively deliver on their mandates.

“Government recognizes the important role that SOEs play in advancing public policies and creating value for society. SOEs are a useful tool in the provision of public goods and services, particularly in sectors where market failures exist,” Musokotwane said.

He added that the revised policy would also facilitate essential infrastructure projects, such as rail development, to enhance Zambia’s economic competitiveness.

Musokotwane is hopeful that through the effective implementation of the policy, the institutional, governance, and legal framework for these enterprises would be strengthened, improving efficiency and financial sustainability.

The revised policy also seeks to enhance government oversight by improving supervisory and performance monitoring frameworks to ensure SOEs contribute meaningfully to the national economy.

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