Tuesday, September 7, 2010

Closing Remarks given by Hon G. MoyoMinister of State Enterprises and Parastatals at the Public–Private Partnership Workshop, HICC, 06 Sept 2010

Hon. Minister of Economic Development and Investment Promotion.Hon Tapiwa Mashakada
Programmes Director, Prof. Paul Mavima
Sponsors of the Conference : The Development Bank of Southern Africa and the Infratructure Development Bank of Zimbabwe
Ladies and Gentleman

I am honoured to have been invited to give the closing remarks at this workshop. I am reliably informed that your workshop has considered and adopted the PPP’s Draft Legislative Review, the Policy Document and the Institutional Framework and Guidelines for Public Private Partnerships. These documents will now go through the processes of government for adoption and implementation by the Government of Zimbabwe.


You have therefore laid the foundations for an important policy of government by your attendance and participation at this workshop. In my thinking this is how Government should work that is there should be sufficient stakeholder consultation followed by a predictable policy adherence and implementation.

The Government of Zimbabwe faces huge challenges as it implements its economic restructuring programmes, particularly in the current global economic downturn. Critical to the economic recovery programme is the provision and expansion of basic services and the development of sustainable infrastructure. New infrastructure needs to be provided and existing infrastructure upgraded or rehabilitated, to deliver public services more effectively and extend access to services to a greater number of the population than currently have access to these services.


The Government of Zimbabwe has acknowledged that it presently does not have the financial resources to expedite its economic turnaround. In order to deliver such critical capital investments whilst maintaining sound fiscal policies, the Government has now sought alternate means of financing such investments including the use of PPPs. Internationally, including in particular, the UK, Europe, Australia and South Africa, PPPs are being used effectively as a means of providing national assets such as roads and railways, and social assets such as schools and hospitals.

PPPs will form therefore play an integral component of Government’s overall strategy for the provision of public services infrastructure across all appropriate sectors. As experience elsewhere has shown, PPPs can offer value for money benefits and also reduce budgetary pressure whilst improving service delivery. These advantages mean that PPPs, whilst not being the answer to all Government’s project delivery needs, should be investigated in the first instance when suitable projects are being evaluated.

The policy on PPPs complements the direct role of Government of anchoring economic growth and development through the provision of enabling infrastructure as this requires a partnership approach under which Government and private entrepreneurs work more effectively together towards enhancing the delivery of public service.

In light of the fundamental changes that have taken place in Zimbabwe from 2004 to date, it was felt that there was a need for the 2004 PPP Policy document to be reviewed and revised.The new PPP policy document must offer assurance to potential private investors, current service providers, empowerment groups, labour and other interested groups that the Government is committed to a transparent and predictable PPP policy process.

The Ministry of State Enterprises and Parastatals is currently driving the process of restructuring, commercialization and privatization of state enterprises and parastatals. Ten public entities have already been identified for restructuring this side of Christmas and these are the Cold Storage Company, Ziscosteel, NOCZIM, Air Zimbabwe, Agribank, NRZ, ZESA, GMB, NetOne and TelOne. Seven out of the ten companies listed are infrastructure related companies and we would like to invite potential investors to consult with line Ministries responsible for these entities.

As a Ministry we have committed ourselves in ensuring that State enterprises and Parastatals should match if not exceed the private sector when it comes to corporate governance standards so that they have the capacity to engage in successful PPPs.

The introduction of transparent guidelines and regulations, coupled with appropriate regulatory safeguards, will guarantee security and a competitive environment for private investment in PPP programmes.

The Government cannot do this by itself, we need to work with you, offshore and at home.

We all need to work together cooperatively.

We all have to take responsibility

We owe it to each other and,

We owe it to our children

In conclusion may I quote from the book of Philippians 4 Vs 8 ‘Finally, Brethren, whatever is true, whatever is right, whatever is noble, whatever is pure, whatever is lovely, whatever is admirable, if anything is praiseworthy and excellent, think about such things’.

I thank you.