Assessing privatisation in Africa : comparisons between South Africa and Zambia

Moalosi, Dhilah Reswelang (2004-12)

Thesis (MBA)-- Stellenbosch University, 2004.

Thesis

ENGLISH ABSTRACT: The 1990s witnessed a substantial increase in privatization of SOEs in African countries. In some countries, like Zambia, privatization was greatly motivated by IFIs, through SAPs. However, for other countries like South Africa, the drive came from the desire to improve efficiency in the delivery of services and enhance economic growth. This study seeks to assess privatisation processes in Africa, with special reference to South Africa and Zambia. The motives for privatisation are discussed, as well as the role played by IFI in African privatisation programs. Privatisation in Zambia is regarded by many, including the World Bank as a success story. The government of Zambia, through the ZPA, has shown commitment towards privatisation and embarked on a rigorous privatisation programme which saw the transfer of 85 percent of the Zambia's economy to the private sector. In South Africa, privatisation's pace is slower than expected a nd there has been a shift of focus from pure privatisation to investment into efficiency of the state enterprises. There is no consensus from various stakeholders. The business criticises the government for the slow paced privatisation process, while organised labour, for fear of job losses, is putting resistance to the process. This study concludes by mapping a way forward for African countries. African countries should continue cautiously with the privatisation process. Proper regulatory framework should be established and issues like poverty reduction and long tern development should be addressed as well when drawing privatisation policies.

AFRIKAANSE OPSOMMING: Die 1990's getuig van 'n beduidende toename in die privatisering van ondernemings in staatsbesit (State-owned Enterprises - SOEs) in Afrikalande. In sommige lande, soos Zambië, is privatisering grootliks deur Internasionale Finansiële Instellings (IFI's) via Gestruktureerde Aanpassingsprogramme (Structural Adjustment Programmes - SAPs) gemotiveer. Die dryfkrag in ander lande, soos Suid-Afrika, spruit egter uit die begeerte om doeltreffendheid in dienslewering te verbeter en om ekonomiese groei te versterk. Hierdie ondersoek kyk na die assessering van privatiseringsprosesse in Afrika, met spesiale verwysing na Suid-Afrika en Zambië. Die beweegredes vir privatisering word bespreek, sowel as die rol wat IFI's in privatiseringsprogramme in Afrika speel. Baie mense en organisasies, insluitend die Wêreldbank, beskou die privatisering in Zambië as 'n suksesverhaal. Die regering van Zambië, via die ZPA, het hom tot privatisering verbind, en het 'n streng privatiseringsprogram aangepak waarvolgens 85 persent van Zambië se ekonomie na die private sektor oorgedra is. Die tempo van privatisering in Suid-Afrika is stadiger as wat verwag is, en daar is 'n klemverskuiwing van suiwer privatisering na 'n belegging in die doeltreffendheid van staatsondernemings. Daar is geen eenstemmigheid tussen die verskillende belangegroepe nie. Sakeondernemings kritiseer die regering vir die stadige privatiseringsproses terwyl georganiseerde arbeid, uit vrees vir verlore poste, die proses teenstaan. Hierdie studie sluit af deur 'n pad vorentoe vir Afrika-lande uit te stippel. Afrika-lande moet versigtig voortgaan met die privatiseringsproses. Behoorlike regulatoriese raamwerke moet gevestig word, en aangeleenthede soos armoedeverligting en langtermynontwikkeling moet aandag geniet wanneer beleid oor privatisering opgestel word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/70082
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