GOVERNANCE OF STATE-OWNED ENTERPRISES IN ZAMBIA

Abstract

Reports of the Auditor-General indicate that governance of State-Owned Enterprises continues to be a challenge in Zambia. Unfortunately, not many studies have been carried out on this subject matter. The purpose of this qualitative study therefore was to explore contributory factors to poor governance in SOEs in Zambia focusing on the Ministry of Finance. Data was mainly collected through interviews. Participants were the Office of the Auditor-General, two State Banks, and independent experts in addition to the Ministry. Although situated in one ministry, this research has enabled the gaining of insights into challenges that ministries face when supervising parastatals. Findings indicate that a combination of a weak supervisory system, lack of capacity in terms of manpower in the Government Investments Unit at Ministry of Finance, and lack of a specific policy and legal framework for SOEs may be the major issues at play when exercising the supervisory function.