Parastatals

A parastatal is an entity that is owned or controlled by a government but operates as a business. The term is derived from "para" meaning alongside or beside, and "statal" referring to the state or government. Parastatals can be found in various sectors, including utilities, transportation, and telecommunications. Their purpose is often to provide essential services to the public or to engage in commercial activities that are deemed strategically important for the nation.

The structure and autonomy of parastatals vary significantly. Some function with a high degree of independence, while others are more closely managed by government ministries. They are typically established by law or decree and may be funded through government appropriations, revenue generated from their operations, or a combination of both. The performance of parastatals is often a subject of public debate, with discussions focusing on efficiency, profitability, and their contribution to national development goals. Oversight mechanisms are usually in place to monitor their activities and ensure accountability.