Non-strategic privatisation --- decision which is both not well researched and informed sometimes has dire consequences and impacts negatively on the economy of a country in the long-run. Some governments, in the interest of getting aid abroad or attracting FDIs in the wrong way, decide to privatise state-owned enterprises and economy generating entities through not co-ownership but rather complete sales. In the long run, one would find that such a state has absolutely nothing to call their own in the country because the proceeds of their earlier sales got incorporated into the government main corfus as spending budget and did not generate more money because it was not invested.

Source author: Malefetsane Dominic Mosala mosalalaw@gmail.com