Harare – Government on Tuesday approved the merging of all ZESA Holdings subsidiaries into a single vertically integrated company and the unbundling of the Grain Marketing Board into two divisions.
Zesa has five companies namely Powertel Communications, Zimbabwe Electricity and Transmission Distribution Company (ZETDC), Zimbabwe Power Company (ZPC), Zesa Enterprises (Zent) and Zesa Holdings.
Government also added to the subsidiaries the Rural Electrification Agency (REA) and the Zimbabwe Regulatory Authority (Zera), exerting more costs on the company and the tariff.
Finance minister announced the public enterprises reform program saying it will bring efficiency in the economy.
Mthuli said as espoused in the Transitional Stabilisation Programme (TSP), reforms will be instituted at most public entities.
ZESA subsidiaries will be merged into a single vertical integrated company and this means amending the Electricity Act in order to cater for the proposed changes in the structures of ZESA, he said.
Still on ZESA, Mtuli said there is need to engage a reputable Human Resources consultant to advise the government on the best structure for the rebundled ZESA as Powertel will be hived off from ZESA and merged with Zarnet and Africom.
Government further set up the Rural Electrification Agency (REA) and the Zimbabwe Regulatory Authority (Zera).
GMB will be split into two arms; one set to play the strategic grain reserve function and the other, Silo Foods Industries, will be a commercial business entity.
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