Types of Privatisation

Forms of privatization

1. Share issue privatization: This involves selling shares of a state-owned enterprise to the public through the stock market.
2. Assets sales privatization: This involves selling the physical assets of a state-owned enterprise to private investors.
3. Voucher privatization: This involves distributing shares of ownership to all citizens at a very law price.
4. Privatization from below: This involves the start-up of a new private business in a formerly socialist country.

Other forms of privatization

1. Outright sale: This involves the outright sale of all government shares to the private sector e.g. Kilimanjaro Hotel.
2. Partial privatization: This involves the government selling some of the shares to some private sectors while retaining some (joint venture) e.g. N.B.C.
3. Restitution: This is when the government returns enterprises and properties to their rightful owners.
4. Contracting out: This is when the provision of goods or services is transferred from the government to the private sector while ownership is retained by the government.
5. Lease/renting out: This involves renting out a state-owned enterprise to private individuals e.g. toilets, markets, bus parks etc.
6. Liberalization/deregulation: This involves the government removing barriers to entry for private individuals in certain undertakings in order to increase competition.

Types of public enterprises

1. Public Utility Parastatal: These are formed to provide vital services to people e.g. DAWASCO, TANESCO.
2. Marketing Parastatal: These are involved in marketing commodities, especially agricultural commodities.
3. Development Cooperation: These are established by the government to spearhead some development projects e.g. National Development Cooperation (NDC).
4. Financial Cooperation: These are established with the aim of mobilizing financial resources in the country e.g. NIC, NSSF, TIB etc.
5. State Commercial Enterprises: These are established with the aim of making profits for the government e.g. the former TBL.