Allied Insurance set for privatization: Finance Minister

Allied Insurance set for privatization: Finance Minister

By insurance24

HARARE, Allied Insurance is among state enterprises and parastatals that government has set for privatization as part of the wide-ranging parastatal reform agenda which also include liquidations and mergers.

Finance and Economic Development Minister Patrick Chinamasa at a press conference said that the Industrial Development Corporation (IDC) should retain its current 10% interest in Allied Insurance.

Allied Insurance was registered as an insurance company in terms of the insurance act chapter (24:07) authorized by the insurance and Pensions Commission (IPEC) to underwrite short term insurance business in Zimbabwe and commenced full scale operations in June 2006.

Chinamasa said that the decision was taken by Cabinet and this is the first stage of the phased reform agenda.

“This Framework has been developed by the arms of Government mandated to oversee SEPs governance, performance and reform.

“These are the Corporate Governance Unit (CGU) within the Office of the President and Cabinet (OPC), the Ministry of Finance and Economic Development and the State Enterprises Restructuring Agency (SERA) on the basis of a comprehensive diagnostic analysis of the overall sector,” he said.

He added that detailed implementation modalities for each of the Cabinet decision will be provided in the form of a Memorandum to Cabinet by each respective line Ministry.

“These include indications where necessary, for the engagement of technical, financial or legal advisors in order to facilitate the reform or restructuring process agreed by Cabinet,” he said.

Other parastatals targeted for privatization include the National Handicrafts Centre which will be transferred to Ministry of Women Affairs, Gender and Community Development for market promotion. Surface Investment, Zimbabwe Grain Bag and Ginhole Investments will be privatized with government retaining 10% shareholding.

Chinamasa said there are government strategic entities that are targeted for partial privatization through engagement of partners or listing on the Zimbabwe Stock Exchange
These include Petrotrade, Zimpost, POSB, the ZMDC various mining units and IDBZ. Others include Telone, Netone, Telecel, ZUPco, Willovale Motors and Chemplex Corporation.

Meanwhile, key on the announcements made Chinamasa is the merger of the Postal and Telecommunication Regulatory Authority of Zimbabwe and Broadcasting Authority of Zimbabwe, which could bring the country closer to internet regulation with emphasis on streaming services.

Chinamasa also announced that the Special Economic Zones Authority, the Zimbabwe Investment Authority, ZimTrade and the Joint Venture Unit (currently in his office) will be merged to establish a One Stop Shop for potential business investors and in the process cut the various fees and levies as well as time spent by investors seeking approvals.

In addition, the National Indigenisation and Economic Empowerment Unit has finally been given a ministry – the Ministry of Industry, Commerce and Enterprise Development – and also the merger of Powertel, Africom and Zarnet.