State Enterprises to Face Stronger Supervision
By Mary Kachepa
Government has launched the State Owned Enterprises – SOEs- Supervisory and performance monitoring framework.
The framework is meant to improve the performance of State Owned Enterprises and make them profitable.
Finance and National Planning Minister, SITUMBEKO MUSOKOTWANE also launched the revised State Owned policy to enhance government oversight.
Speaking during the launch, Dr. MUSOKOTWANE said many State Owned Enterprises -SOEs-did not operate profitably in 2022 according to the analysis of the financial performance.
He said most of the State Owned Enterprises had debt to equity ratio exceeding one hundred percent signifying heavy reliance on borrowing rather than internally generating income.
Dr. MUSOKOTWANE said the two documents will also help to address challenges faced by – SOEs.
Meanwhile, European Union Head of Cooperation Delegation CLAUDIO BACIGALUPI said the introduction of performance contracts will serve as a foundation for the monitoring and evaluation of both the financial and non financial performance of -SOEs.
