THE
HONOURABLE MINISTER OF FINANCE AND DEVELOPMENT PLANNING ADDRESSES THE
PRIVATE SECTOR ADVISORY COMMITTEE|
For immediate Release Wednesday 30th June 2004 1. The Honourable Minister of Finance and Development Planning, Dr. Timothy Thahane held talks with the Private Sector Advisory Committee (PSAC) this afternoon in what was the first time that a Government Minister had held talks with the Committee 2. In his address to the Private Sector Advisory Committee (PSAC), the Honourable Minister emphasised that Government is still committed to the restructuring of state-owned enterprises. He pointed out the creation of the Privatisation Unit as an implementing arm of Government to institutionalize the restructuring process. 3. He mentioned that the appropriate strategy for restructuring of state owned enterprises is that of Government seeking long term commitment and extra investment from the investor that would benefit both the investor and the nation in the long run. 4. On the implementation of venture capital to assist local entrepreneurs to expand their businesses, he disclosed that Government is looking at a solution whereby in awarding a loan to an entrepreneur, a commercial bank would work together with the entrepreneur and nurture him throughout the process to maximize the probability of success of the venture and so minimize risk. 5. On the privatization proceeds, the Honourable Minister remarked that an institutional mechanism would be essential to develop a revolving fund that would enable extension of loans from repayments. The proceeds can also be availed for financing and feasibility studies for promising projects. 6. Remarking on the relationships between various sectors, Dr. Thahane he said the Government is willing to work with the private sector to forge closer links. To this end a working committee between the two sectors should be formed. 7. Noting the concerns that were raised during the meeting, he encouraged the Committee to look into the possibility of restructuring itself in some way to address some of the private sector problems that are being faced by the country. Director, Privatisation Unit Maseru 100 PRIVATISATION UNIT |
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