Section 195: State-controlled commercial entities
Constitution of Zimbabwe
(1) Companies and other commercial entities owned or wholly controlled by the State must, in addition to complying with the principles set out in section 194(1), conduct their operations so as to maintain commercial viability and abide by generally accepted standards of good corporate governance.
(2) Companies and other commercial entities referred to in subsection (1) must establish transparent, open and competitive procurement systems.
Insight on State-controlled Commercial Entities
This provision establishes a dual standard for state-owned enterprises in Zimbabwe: they must operate as commercially viable businesses while simultaneously adhering to public sector governance principles. This balance aims to prevent these entities from becoming financial burdens on the state while ensuring they maintain public accountability. The procurement requirement in subsection (2) specifically targets corruption risk, as state enterprises are often vulnerable to non-competitive contracting that favors political connections over value for money.