Zambia’s New SOE Policy 2024, A Pathway to Efficient Public Sector Investment
The Government of Zambia has unveiled its Revised State-Owned Enterprise Policy (2024), signaling a decisive shift toward strengthening governance, improving performance, and maximizing returns from state-owned enterprises (SOEs). This strategic policy update comes at a time when most SOEs are grappling with high debt burdens, weak capital bases, and ineffective oversight frameworks.
State-Owned Enterprises play a pivotal role in bridging market failures and delivering critical public goods. From railways to utilities, SOEs underpin Zambia’s socio-economic infrastructure. However, despite efforts through the 2012 SOE Policy and the formation of the Industrial Development Corporation (IDC) in 2014, operational inefficiencies and governance deficits have persisted.
According to the Ministry of Finance and National Planning, the revised policy addresses key structural weaknesses in Zambia’s SOE landscape. It introduces a more robust governance and regulatory framework designed to enhance transparency, accountability, and financial viability. Notably, the policy clarifies roles among shareholder ministries, holding companies, and boards of directors a long-missing piece that often blurred accountability lines.
The policy’s core objectives include:
Strengthening SOE oversight and corporate governance.
Aligning SOE performance with national development goals.
Reducing fiscal risk to the Treasury through better financial management.
Promoting private sector participation and Public-Private Partnerships (PPPs).
Implementation will be guided by clearly defined performance targets, legal compliance standards, and ESG (Environmental, Social, and Governance) benchmarks. The IDC, acting as the Government’s investment arm, will play a central role in managing SOE shareholding interests, alongside strategic ministries.
Economic analysts have welcomed the revised policy as a long-overdue reform that could unlock efficiency and value in Zambia’s public sector. However, the policy’s success hinges on political will, professional management, and the discipline to avoid undue interference in SOE operations.
As Zambia positions itself for economic recovery and investor confidence, this new policy may well determine whether SOEs become national assets or liabilities in the years ahead.
May 6, 2025
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