(Ecofin Agency) - Zimbabwe plans to partially privatize incumbent operator TelOne, its mobile branch NetOne, the 40% owned Telecel and Zimpost, Mthuli Ncube (photo), the minister of finance revealed during the presentation of the country’s budget for 2019.

TelOne is actually facing financial problems due to many unpaid invoices owed by the government and parapublic institutions. According to Chalton Hwende, president of the parliamentary committee in charge of ICT, the government owes 53% of the unpaid invoices amounting to $73 million and para-public institutions owe $25 million. In addition, many international partners threaten to stop their collaboration with the company.

Even though the other public institutions do not experience an alarming financial condition, they are not as profitable as the government would want to.

Mthuli Ncube explained that the government was planning to conduct these privatizations in the coming twelve months. The decision which falls within the framework of the transitional stabilisation programme is aimed at reducing state expenditures by sharing the expenses with a partner.