Government to get dividends from reformed parastatals


Some statutory corporations are expected to become financially independent and start giving dividends to government in the next three months, a total departure from reliance on government funds.

This is according to a press statement from the Public Service Reforms Commission which held progress review meetings for 23 parastatals from the north and centre in Lilongwe last week.

“Parastatals that were in deficit and proving costly to Treasury, will become financially independent and start declaring dividends to government as a result of these reforms,” reads the statement.


The statement gives examples of parastatals that are on course towards ensuring financial reliance as per the spirit of the reforms to ease pressure on government resources.

This probably resonates well with calls that there is need for the country to start preparing itself to completely stop relying on donors.

The statement reports that some of the parastatals that have shown signs of being financially stable include Airport Development Limited (ADL) whose reform area to introduce car park automation at Kamuzu International Airport (KIA) has seen a 150 percent rise in fees collection.


The statement states that such revenue will be used to improve facilities and services at KIA.

On the Northern Region Water Board (NRWB), the Commission says after introducing and enhancing leak detection system, NRWB has managed to reduce non-revenue water (water lost through distribution network) from 37 percent to 33 percent.

“This efficiency reform has led to reduced intermittent supply, increase in sales of water to customers, consequently increasing the revenue to the board than ever before,” reads the statement in part.

The Lilongwe University of Agriculture and Natural Resources (Luanar) is also on course with its resource mobilisation drive, according to the statement, as construction of a filling station and revitalization of Bunda Farm are underway to ensure sustainable income generation.

On its part, Mzuzu University has established a Trust Fund through which resources will be put together for the University to offer scholarships to needy students.

“In the coming semester, 40 students will benefit thereby complementing government efforts in ensuring that needy students access tertiary education,” reads the statement.

President Peter Mutharika approved reforms in parastatals in October 2015 through the Public Service Reforms Commission. The President appoint his vice, Saulos Chilima, to drive the reforms.

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