Pure Simango, Staff Writer 
FINANCE minister Mthuli Ncube says the government is still looking into the possibility of partially privatising the Zimbabwe United Passenger Company (Zupco), as part of efforts to improve the parastatal’s efficiency.
The company was among 12 parastatals that were targeted for privatisation by the Treasury in 2018 to mitigate widening losses.
Since 2020, when the government banned private commuter omnibuses from providing public transportation, Zupco has anchored the country’s urban mass transportation system, but service delivery has not been smooth amid reports of efficiency bottlenecks at the company, which also has massive debt and a depleted fleet.
“The government is reviewing the current model with a view to improve financial and service delivery efficiency, and has already engaged a consultant whose role includes exploring possibilities for partial privatisation of Zupco,” Ncube said in his 2022 national budget statement last week.
The privatisation plans come as the government has been negotiating with Zimre Holdings (Zimre) for its exit from the company. The financial services group, which owns 49 percent of the company, has been trying to divest since 2004.
Zimre says it sees no value in continuing to pump capital into Zupco; “an organisation that is run to meet a social obligation, which is providing affordable urban transport and not so much commercial”.
Earlier this year, Zimre said it had reached an agreement with the government on the value of its stake in Zupco, a matter which had held up its exit from the company.
“It is unfortunate that we cannot share the figure because we are yet to sign the agreement,” a Zimre official said.
Zupco charges subsidised fares, which Ncube said have proved to be affordable to the commuting public. The company has since roped in private players and partnered with the National Railways of Zimbabwe (NRZ) to augment the available fleet.
The company’s combined fleet now stands at more than 900 buses and 1 150 commuter omnibuses countrywide servicing various routes including those serving tertiary education and other social services institutions including health centres.
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