What are the benefits of Privatisation?
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What are the benefits of Privatisation?

28 Aug What are the benefits of Privatisation?

Posted at 08:46h in by
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  • 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.