Harare — GOVERNMENT Ministers whose responsibilities extend to some of the key utilities in the country were last month running around trying to restrain these public enterprises from charging extortionist tariffs that had sparked an outcry among consumers countrywide.

ZESA, the power utility, TelOne and the blundering Zimbabwe National Water Authority (ZINWA) - now in the final stages of handing back the distribution of water to more competent municipalities - were among government-run institutions that were quick to expose their insatiable appetite for hard currency when they hiked their tariffs beyond logic at the stroke of the liberalisation of the country's economy.

And rightly so, the Ministers, thrown at the deep end of the murky Zimbabwean economy, were justified in reversing the exorbitant tariffs that could have escalated the collapse of industry, impoverished households and worsened the apprehension in the investor community.

While we do not condone interference in the running of public utilities, or any business for that matter, the latest episode showed how dangerous some of these parastatals could be if left to operate in an unregulated environment. The public had reacted angrily to this shocking insensitivity and daylight robbery which in some circles had been viewed as acts of sabotage against the three-week-old inclusive government whose mandate includes stabilising Zimbabwe's savaged economy.

It would however appear that these utilities as well as tertiary institutions and universities that had hiked their fees beyond reach were just out to make up for years of unviable pricing policies foisted on them by President Robert Mugabe's government before it came back to its senses late last month.

By rushing their return to the black these selfish institutions failed to look beyond their profit margins and the unintended consequences arising from their actions which could have caused their bankruptcy as the struggling consumer was most likely to default on payments. They have also exposed themselves for what they are: misguided monoliths whose revival is centred only on one of the four marketing Ps - Price.

In an environment where markets are sneezing after catching the cold from the global financial crisis, it can no longer be business as usual. More so for local companies that must contend with a decade-long recession, the worst in history, suffered by the country.

It therefore becomes absolutely necessary to maintain a delicate balance between affordability and viability, in other words keeping the product/service within reach without necessarily rocking the boat.

The lesson to the newly appointed Minister responsible for parastatals is: Restructure these utilities, commercialise them in order to wean them from the fiscus and get them privatised eventually.

The taxpayer has had enough of these inefficient utilities and cannot afford subsidising them a day longer than is necessary.

If done properly privatisation can put a stop to the bleeding suffered by most of these loss-making enterprises, re-engineer their business models so they can operate profitably and price competitively.

Zimbabwe needs not look beyond its backyard to see the benefits of privatisation.

CBZ Holdings, transformed from the collapsed Bank of Credit and Commerce International, has grown to become one of the largest banks in Zimbabwe and yet it nearly sunk about 12 years ago before Gideon Gono, now the Reserve Bank of Zimbabwe governor, hatched a plan to rescue it.

To date, CBZ Holdings has earned the reputation of being one of the market's movers and shakers after acquiring Datvest Asset Management, the biggest asset manager in Zimbabwe and Beverly Building Society, which has been rebranded CBZ Building Society.

AICO Africa, the former Cotton Company of Zimbabwe, is another good example. From being a predominantly cotton merchant, the Zimbabwe Stock Exchange-listed group has grown in leaps and bounds, pouncing on significant stakes in SeedCo, Frupac and Olivine to underline its market leadership.

Other success stories born out of the privatisation exercise which was put on hold in 2000 when government ditched International Monetary Policy-backed economic reforms include Dairibord Zimbabwe Limited, the Rainbow Tourism Group and ZIMRE Holdings Limited.

Apart from empowering scores of indigenous people these entities are contributing significantly to the fiscus through corporate tax, dividends and Pay As You Earn tax while some of them now rank among the country's largest foreign currency earners.

And yet despite these successes government went on to suspend privatisation and disband the Privatisation Agency of Zimbabwe when only six of the 40 public enterprises had been privatised.

Given the quantum of foreign currency resources needed to revamp the swathe of parastatals under the government's ambit by way of recapitalising them, it would make sense to come up with a programme of action for the privatisation of the National Railways of Zimbabwe, TelOne, ZESA, the Grain Marketing Board, the Zimbabwe Iron and Steel Company, the National Oil Company of Zimbabwe, Hwange Colliery Company, the Zimbabwe Broadcasting Holdings, Air Zimbabwe, the Zimbabwe Mining Development Corporation, the Minerals Marketing Corporation of Zimbabwe, the Cold Storage Company and the Agriculture Rural Development Authority to mention but a few.

A word of caution though! Privatisation should not be a strait jacket or rather the authorities should not adopt a one-size-fits-all strategy. Privatisation should be looked at on a case-by-case basis, taking into consideration the uniqueness of each business and its strategic position in the economy.

In certain cases it would make sense to go the strategic partnership route, or unbundling some of the parastatals as had been done with Astra Holdings which gave birth to Tractive Power, Cairns and Astra Industries before disposing part of the shareholding in these businesses as opposed to wholesale spinoffs.

In privatising parastatals, government must also not negate the interests of the indigenous people.