Privatization has been at the centre of national reform programs in developed countries as well as developing and transitional economies. The major objective of privatization is to improve economic efficiency, competitiveness and sustainability of the whole private sector of the economy.
Selling off public assets to private operators can create a win-win situation for developing countries looking to unload expensive and unsustainable assets, while bringing cash to government budget. For investors seeking to capitalize on investment opportunities in frontier markets, privatization offers an important market entree.
Privatization implies a readjustment in the roles of state and the private sector in economic and social development. Thus, it needs to be carried out in a way that can ensure success and widespread support. In some cases it has played a role as an instrument of systemic change and therefore when the state shifts its responsibilities to the private sector it has to assume new responsibilities as a regulator of privatized enterprises, as a guardian to ensure fair competition and as provider of social protection.
We work with governments to create favorable environment for successful privatization:
1.Strong and growing economy with a viable private sector. This facilitates the absorption of redundant workers and considerably reduces the social costs involved. A period of economic crisis is not favorable to successful privatization.
2.Well-functioning legal and administrative institutions. To attract private capital, there must be adequate enforcement of laws covering private property rights, contracts and enterprises, as well as reasonable and fair taxation. There must also be regulation of financial markets, competition and monopolies.
3.An infrastructure offering companies adequate communications, transportation and utilities. These services must be available at internationally competitive prices to allow successful competition.
4.An effective system of corporate governance. Some control is needed to ensure that the new owners respect the terms of the privatization sale; an effective system of governance is also needed to complement the skills and experience of the new management team.
5.Social safety net which protects redundant workers in the event of dismissal.
This includes separation indemnities, unemployment insurance, assistance in re-employment and retraining.
We offer full range of services in the privatization sector that include:
Mali Markala Sugar Project is a Public-Private Partnership (PPP) agribusiness project in Mali, comprising both – agricultural and industrial components. Markala Sugar Project has two main entities – CaneCo, which works in agriculture field; and SoSuMar, and industrial plant.
CaneCo will establish a 14,132 ha irrigated cane estate in Markala, which is 275km northeast of Bamako, on the north bank of the Niger River. It is planned to produce 1.48 million tons of sugar cane per annum. The project will support community development as well.
SoSuMar, the industrial component, comprises a sugar mill, ethanol plant and power co-generation facility. The mill will have a cane crushing capacity of 7,680 tons per day at full operating capacity, producing 190,000 tons of sugar per annum. The sugar will be traded on the domestic and regional markets. The ethanol plant will produce 15 million lt. of ethanol per annum, while the co-generation facility will produce 30 MW of electricity per annum.
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