Musokotwane Says SOE Bill Will Turn State Enterprises into Engines of Growth
The State-Owned Enterprises (SOE) Bill currently before Parliament of Zambia marks a decisive shift towards accountability, efficiency and value creation in the management of national assets, Minister of Finance and National Planning Dr Situmbeko Musokotwane has said.
In a public statement, Dr Musokotwane said the Bill seeks to answer a fundamental question: whether State-Owned Enterprises, created using public resources, are delivering tangible benefits to citizens. He noted that for many years some SOEs have suffered from weak governance, unclear accountability and persistent financial losses, resulting in repeated Government bailouts.
He explained that such inefficiencies have real consequences for citizens, diverting resources away from critical sectors such as education, healthcare, infrastructure and social protection, while also undermining job creation and economic confidence.
Dr Musokotwane described the SOE Bill as transformational rather than administrative, aimed at restoring discipline and protecting public investments. The proposed law introduces clear roles for shareholders, boards and management, performance contracts to ensure measurable results, and modern corporate governance standards to strengthen transparency and investor confidence.
The Bill also provides frameworks for restructuring and recapitalisation, while ensuring that social or developmental mandates undertaken by SOEs are openly recognised and not hidden within commercial operations.
Once enacted, the Minister said citizens should expect stronger institutions, improved service delivery, increased employment opportunities and reduced pressure on public finances.
He added that the reforms would reposition SOEs as professionally governed, performance-driven and commercially disciplined entities that support national development rather than burden the economy. Under the new framework, SOEs are expected to operate on principles of accountability, sustainability, competitiveness, partnership with the private sector and opportunity creation.
Dr Musokotwane emphasised that the reforms are not intended to crowd out private enterprise but to strengthen the foundation for private sector-led growth.
“A well-governed public enterprise sector will create reliable infrastructure, stable markets and credible partnerships — the very conditions that attract investment and stimulate entrepreneurship,” he said.
He called on all stakeholders, including SOEs, the private sector, workers, financial institutions, educational institutions and citizens, to support the reforms by embracing transparency, productivity, innovation and accountability.
“The future of State-Owned Enterprises in Zambia is not survival,” Dr Musokotwane said. “It is national progress.”
