Home » Entertainment » GOVT TO ASSUME DEBTS OF ZIMBABWE’S RAILWAY, CIVIL AVIATION AUTHORITIES

HARARE, The Zimbabwe government plans to assume debts owed by the National Railways of Zimbabwe (NRZ) and the Civil Aviation Authority (CAAZ) to improve their attractiveness to potential investors, says Finance and Economic Development Minister Patrick Chinamasa.

The NRZ, which owes millions of dollars to creditor, among them its workers, has failed to run profitably for years because of under-capitalization and ageing rolling stock, incurring losses of more than 200 million USD between 2009 and 2013. The CAAZ meanwhile has also faced debt and funding challenges which have hindered smooth operations of the authority.

Responding to questions in the National Assembly here Wednesday, the Minister said this was one of several initiatives the government was working on to restore viability of the parastatals. "I want the balance sheets of these entities to be cleaned up with a preparatory view to look for new investors," he said.

"We are insisting that we will not put new money into a parastatal until we get that parastatal back on a proper footing."

Last month, Transport and Infrastructure Development Minister Dr Jorum Gumbo was quoted as saying that the Cabinet had agreed to take over Air Zimbabwe's debt, as the government's bid to court investors for the airline gathers momentum.

Asked the implications of inheriting the huge debts of parastatals, Chinamasa said these entities were vital in economic recovery efforts.

"With respect to the NRZ, a transport system without a railway system is not good enough. Currently the life span of our roads is shortened because of heavy traffic on our roads," he noted.

"A railway system is a very important cog in the transport system of any country so for that reason I took the decision that we have to assume the liabilities of NRZ in order to make it possible for investors, whether through equity, or through loan financing, to come in and invest.

"With respect to the CAAZ, it is the authority which runs airports; if you do not have it you should not have airports."

Commenting on the takeover of Air Zimbabwe's debt, Chinamasa said a viable airline had potential to play a big a role in the country's economy. "My own position is that we want an entity which can just break even. It does not need to make a profit because there is an economic return by operating an Air Zimbabwe which brings in more arrivals to our country," he said.

Source: NAM NEWS NETWORK

Subcribe to my feedFollow on TwitterLike On Facebook Pinterest

Calendar

November 2017
MTWTFSS
« Oct  
 12345
6789101112
13141516171819
20212223242526
27282930 

Business News

Our Facebook Page