Zimbabwe to sell national airline

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Air Zimbabwe’s administrator, Reggie Saruchera said Zimbabwe has invited bids for the state-owned airline as President Emmerson Mnangagwa’s government strives to privatize and end state funding to loss-making firms.

Zimbabwe’s state-owned airline, which was placed into administration in October 2018, owes foreign and domestic creditors more than $300 million.

Dozens of state-owned firms, known in Zimbabwe as parastatals, are set to be partially or fully privatized in the next 9 months, as the government seeks to cut its fiscal deficit seen at 11 percent of Gross Domestic Product this year.

In a notice published in newspapers, Saruchera said potential investors should make their bids before November 23, 2018 after paying a non-refundable deposit of $20,000. However, he did not indicate whether investors would be allowed to tender for partial or total shareholding in Air Zimbabwe.

While three of Air Zimbabwe’s planes are grounded, only three are operational. This development has forced the state-owned airline to abandon international routes.

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