IN a desperate bid to raise funds to revive the comatose economy, cabinet has approved a commercialisation and privatisation plan which will take different forms as part of a rationalisation, reconstruction and transformation agenda.The country needs close to US$10 billion to rivitalise its battered economy and so far has received close to US$1 billion.

Minister of Finance Tendai Biti (pictured) told the Zimbabwe Independent on Wednesday that government would access different state assets and decide on the model which they will use either to commercialise or privatise them.

"Cabinet has approved the process of commercialisation and privatisation. This includes how it will be done, timing and objectives," Biti said.

Biti said the process had been divided into different categories and classified state enterprises under each of the groups to ensure maximum benefit for the country.

He said there are some high-value state companies which had huge potential but need capitalisation and good management.

These categories include companies such as TelOne, POSB, power stations, Zisco and National Railways of Zimbabwe.

He also said there are some strategic high-value enterprises which however are seriously draining the fiscus such as Air Zimbabwe.

"These would need compre-hensive commercialisation and partnership plans to be revived," Biti said.

Biti further said there are some strategic high-value state enterprises which were currently dormant but had a potential if they could be revived. These include companies such as the Cold Storage Company and Arda.

"Government should consider various options to revive and resuscitate these companies," Biti said.

He indicated that some of the companies needed to be commercialised and privatised at the opportune time to ensure government gets maximum benefit.

Biti said government was determined to ensure that com-mericlaisation and privatisation plan succeed because it was an integral part of the economic recovery programme Sterp. At the official launch of the 100-day work plan for the inclusive government Economic Planning and Investment Promotion minister Elton Mangoma said government would not embark on a "wholesale" privatisation drive of undercapitalised public utilities.

"Our focus is not on wholesale privatisation," he said.

The minister said government would, however, "develop stra-tegies" to ensure that "key parastatals" such as Zesa and the National Railways of Zimbabwe operate efficiently.

According to the 100-day plan document, public sector reforms would include civil service and Reserve Bank reforms and the Public Finance Management System and the Results Based Management System. Steel manufacturing company Zisco, according to the action plan document, would complete relining of one of its blast furnaces in 90 days.

Zisco has over the years been a target of investors wishing to take full control of the underutilised firm.

"There would be parastatals that require reforms...where there is general agreement the public will know.

Selling assets at low prices does not bring any benefit either to the country or anybody," Mangoma said.