private sector.1 The transfer of assets can be total, partial or functionary, with the sale being implemented by methods such as
of privatization, brought to the fore mainly as a part of the adjustment and stabilization programs of the mid-eighties and the
decade has also seen the World Bank and other donors get increasingly involved in lending operations towards parastatal
sector reforms that included privatization components.
African countries share a number of common features in relation to the drive towards privatization. For most of these countries,
the first twenty years of independence were characterized by rapid growth, driven by favorable terms of trade and high levels of
of parastatal corporations, which were also used as vehicles for increased local participation in the economies. Many
governments moved to nationalize existing foreign interests in their countries and also to create new state enterprises to carry
out the various production and trading functions. Parastatal corporations rapidly dominated the extractive industries,
crisis of the early eighties, and associated inefficiencies made parastatal sector reform a major element in the reform efforts
implemented by the countries.
Zambia was one of the earlier countries to embark on a major privatization exercise as part of its economic reform program
opposition from interested parties2, the program picked up momentum in the last two years, culminating in the rapid divestiture
privatization program in Zambia, highlighting the major tools and mechanisms employed, and the achievements and constraints
main economic issues surrounding moves towards privatization of public enterprises.