2017年-世界发展银行全球_Zimbabwe_Public_Expenditure_Review_2017___Volume_3_State_Enterprises_and_Parastatals_40页_5mb

Summary of ZIMBABWE Public Expenditure Review (2017)

Core Content

This document is the third volume of the Public Expenditure Review (PER) series, focusing on the role and performance of State Enterprises and Parastatals (SEPs) in Zimbabwe. It examines the fiscal implications of SEP operations, their contributions to poverty reduction, and the challenges in corporate governance.

Main Points

1. Overview of SEPs in Zimbabwe

• State Enterprises and Parastatals (SEPs) are vital to Zimbabwe's economy, operating in key sectors such as energy, transport, communications, and agriculture.
• As of 2014, Zimbabwe had 107 SEPs, with 38 being commercial and providing public services on a cost recovery or for-profit basis.
• The number of SEPs has grown since 1980, when the country inherited 20 public enterprises.

2. Fiscal Risks from SEPs

• Fragmented and Incomplete Data: Financial data on SEPs is often scattered and incomplete, with most information available only in annual reports.
• Lack of Clear Control Mechanisms: There is no established mechanism to monitor or control explicit budget guarantees to SEPs.
• High Employment Costs: Employment costs, especially for key management, constitute a significant portion of SEP expenditures and have increased since 2011.
• Low Tax Compliance: SEPs have accumulated substantial tax liabilities, far exceeding the taxes they have paid. In 2014, tax liabilities reached US$42.1 million, while taxes paid were only US$15.6 million.
• Subsidies and Poor Targeting: Sub-economic tariffs have not effectively targeted poverty reduction.
• Systemic Financial Linkages: Complex mutual indebtedness among SEPs contributes to systemic risk.

3. Revenue and Expenditure Trends

• The average contribution of SEPs to GDP from 2011 to 2014 was 15.3 percent, with a decline from 17 percent in 2012 to 13.4 percent in 2014.
• Energy Sector: Contributed the most to GDP, ranging from 3 to 3.5 percent between 2012 and 2014.
• Commercial SEPs Contribution to Tax Revenue: Declined over the period, with the highest tax contributions from the energy sector.
• Net Income Trends: Net income of commercial SEPs was negative since 2012, with losses increasing from US$20 million in 2011 to US$285 million in 2014.
• Dividends and Transfers: Dividends paid by SEPs increased from 2012 to 2013 but fell heavily in 2014. Transfers from the state to SEPs were much higher than dividends received, with the majority going to ZINWA and GMB in 2013.

4. Employment Trends

• The number of people employed by SEPs decreased by about 7 percent from 44,000 in 2011 to 41,000 in 2014.
• The transport sector had the highest employment, though it declined since 2011 due to poor performance.
• The energy sector showed a gradual increase in employment from 2011 to 2014.

5. Role of SEPs in Poverty Reduction

• The document analyzes the role of SEPs in poverty reduction, using the case studies of ZESA and GMB.
• ZESA provides electricity services, which are crucial for economic development and reducing poverty.
• GMB plays a role in maintaining the Strategic Grain Reserve, which supports food security and poverty alleviation.

6. Corporate Governance Challenges

• Governance and oversight of SEPs are shared among multiple institutions, leading to unclear demarcation of roles.
• Some SEPs have both operational and regulatory functions, creating conflicts of interest and undermining performance incentives.
• Corporate governance practices are inconsistent, and compliance with the National Code for Corporate Governance is not evident.

Key Information

• Tax Trends: Taxes paid by SEPs as a percentage of GDP and total government revenue have declined, with SEPs contributing less than 2 percent of GDP in 2014.
• Dividends: Only two of the 38 commercial SEPs declared dividends in 2014.
• Government Arrears: The government owes money to SEPs for services rendered, especially in the energy sector, which undermines their financial viability.
• Reforms: The Government of Zimbabwe (GoZ) has initiated several reforms, including the development of a Corporate Governance Manual for public enterprises, the establishment of a Public Enterprises Corporate Governance Bill, and performance audits to improve accountability.

Policy Options

• Clarify Financial Interrelationships: The GoZ should clarify the financial links between the central government and SEPs, and require annual reports to include arrears, tax liabilities, and transfers.
• Improve Remuneration Policies: Establish clear remuneration benchmarks for key management and boards based on the financial status of SEPs.
• Consolidate Oversight Functions: Consolidate and clarify the oversight roles among institutions to avoid overlapping instructions and improve efficiency.
• Restructure Institutional Framework: Restructure the institutional framework for SEPs to ensure a streamlined approach to reform.
• Implement Corporate Governance Framework: Enact the Public Enterprises Corporate Governance Bill, which includes a requirement for SEPs to remit 50 percent of after-tax profits to the Treasury.
• Enhance Transparency and Accountability: Require SEPs to publish annual reports, strategic plans, and progress reports to improve transparency.

Conclusion

This review highlights the critical role of SEPs in Zimbabwe's economy and underscores the need for improved governance, transparency, and fiscal management to mitigate risks and enhance their contribution to poverty reduction and economic development.