GOVERNMENT STILL KEEN ON PRIVATISATION - THAHANE

The appropriate strategy for restructuring of state owned enterprises is that of Government seeking long term commitment and extra investment from the investor that would benefit both the investor and the nation in the long run. This, according to the Honourable Minister of Finance and Development Planning, Dr. Timothy Thahane.

Speaking at a meeting with the Private Sector Advisory Committee (PSAC) this week, the minister emphasised that  Government is still committed to the restructuring of state-owned enterprises.

A press statement from the Privatisation Unit indicates that Dr. Thahane said an institutional mechanism would be essential to develop a revolving fund that would enable extension of loans from repayments. The proceeds can also be availed for financing and feasibility studies for promising projects.

On the implementation of venture capital to assist local entrepreneurs to expand their businesses, he disclosed that Government is looking at a solution whereby in awarding a loan to an entrepreneur, a commercial bank would work together with the entrepreneur and nurture him throughout the process to maximize the probability of success of the venture and so minimize risk.

With regard to the relationships between various sectors, Dr. Thahane said the government is willing to work with the private sector to forge closer links. To this end a working committee between the two sectors should be formed.

Noting the concerns that were raised during the meeting, he encouraged the committee to look into the possibility of restructuring itself in some way to address some of the private sector problems that are being faced by the country. It was the first time that a government minister had held talks with the Private Sector Advisory Committee.

02 July  2004