Strategic planning for state enterprise performance in Africa: Public versus private options

This article presents methodologies to assist government officials in various African countries who have to deal with ill-defined policy problems arising out of perceived performance shortcomings on the part of state enterprises. It reviews the historical role and record of state enterprise in African economies, the assumptions and major arguments of the ‘privatization option’ and the major forms in which the latter may be carried out. In a situation where debate has tended at times to generate more heat than light, the approach is a pragmatic one, involving careful review of all policy alternatives, including public enterprise rehabilitation and a step by step application of privatisation feasibility analysis in cases where public enterprise rehabilitation proves unviable.