Zimbabwe Plans Sale of State-Owned Businesses to Cut Spending

(Bloomberg) -- Zimbabwe will part-privatize or sell 35 state-owned companies and close at least two others as President Emmerson Mnangagwa seeks to revive the economy and cut government spending.

Since taking over from Robert Mugabe in November, Mnangagwa has sought to end almost two decades of economic decline and reduce a debt burden of at least $11 billion that it owes to lenders such as the African Development Bank. He told ministers in January that they must prove the viability of businesses under their control ahead of a comprehensive reform of state assets.

The southern African nation’s postal service, known as Zimpost, landline operator TelOne Corp. and 17 mines are among businesses that will be subject to “partial privatization,’’ Finance Minister Patrick Chinamasa told reporters in the capital, Harare, on Friday. Some may be listed on the Zimbabwe Stock Exchange, he said.

At least two state-owned companies, one a glass-maker and one that wasn’t specified, will be liquidated, Chinamasa added.

To contact the reporter on this story: Brian Latham in Harare at blatham@bloomberg.net.

To contact the editors responsible for this story: Karl Maier at kmaier2@bloomberg.net, John Bowker, Vernon Wessels

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