The Zambia Youths in the Fights Against Corruption (ZYAFAC) says government should focus on recapitalizing parastatal companies in trying to make them more viable.
ZYAFAC Executive Director Maurice Malambo has expressed concern that despite government pumping in resources in parastatal companies, most of them fail to make profits.
Mr. Malambo believes that these companies have the potential and capacity to make profits and declare dividends to the government, its major shareholder.
Mr. Malambo said this when he featured on Money FM Business Radio’s Power, Policy and Money Programme that airs every Mondays and Thursdays at 9hrs.
Mr. Malambo said it is imperative that the government restructures these state owned enterprises to make them viable.
He said even in developed economies such as the US and Australia, there are some state owned enterprises that fail to perform to the expectations of the stakeholders.
Mr. Malambo said the best way to make these companies viable, is by addressing management lapses.
The ZYAFAC Executive Director said another way of recapitalizing them is by listing them on the stock market.
He believes that this will help in making these companies profit making entities.
Mr. Malambo said it is unacceptable for these enterprises to continue draining the treasury when such funds can be better spent on other equally important programmes in other sectors.
Mr. Malambo has further observed that parastatal companies that have been put under the Industrial Development Corporation (IDC) have been efficient and effective.
He said IDC is soliciting for capital for these companies as well as helping in restructuring them.
Mr. Malambo also stated that the Zambia’s missions abroad have a lot of work to do in terms of economic diplomacy so as to attract more investment in the country.