28 Aug What are the benefits of Privatisation?
Posted at 08:46h in
- POLICY FOCUS – Governments delivers well because it focuses on its core mandate of strategic policy direction and implementation.
- LESS RISK – Lessened Financial and Administrative burden on government therefore money can be channeled to other national needs such as education, health and poverty eradication programmes -Very minimal reliance on government.
- SERVICE DELIVERY – Improved service delivery in the public service
- REVENUE – More tax income from operations that were generic cost-centers! More FDI in-flows in cases of IPOs and SEPs
IMPROVED EFFICIENCY – Empowered citizens – decision-making hierarchies
shortened as the long institutionalised consultations would be cut to
more cost-effective and result-focused models.
- Strengthens the role of the private sector in the economy.
- Private companies are profit oriented and Government is not, therefore the scenario will breed business battles for improved services.
- Very key to innovative ideas.
- COMPETITION – Discourages monopolies – BTC will have to compete with e.g Mascom and Orange – value for money for customers.
- Opportunity for Batswana to entrepreneurship through ESOPs and MBOs – citizen entrepreneurship will grow. Batswana entrepreneurs will now be able to operate more meaningful businesses that touch their communities timely; stimulated by competition and less dependent on government to improve sectors!
- OUT-SOURCING: Citizens will enjoy localisation by home-bred businesses that may compete amongst themselves, thus improving service levels across sectors such as in out-sourced activities. Activities such as cleaning services, gardening and security for government will be owned by citizen companies.