The paper aims at identifying the general performance of the public institutions, their production efficiency, profitability and financial performance after transferring their ownership to the private sector. It also aims to clarify the efficiency of private sector institutions in employing their financial and human resources better than public sector institutions.
This paper is based on the following hypotheses:
Changing ownership leads to the promotion and increased commercial competition of state-owned enterprises, resulting in improved financial performance and productive efficiency.
The profitability of state-owned enterprises is lower than the profitability of privately owned enterprises. Private sector organizations attract and use their financial and human resources more efficiently than public sector institutions. The paper used the descriptive and comparative analytical methodology in order to evaluate the performance of the company before and after its transfering to the private sector, the data is analyzed using various financial analysis tools such as profit and debt ratio and total return on assets.
The Paper depends on many sources for data collecting such as interviews with the company adminstration, company workers, beside the secondary sources such as books, references, periodical, university theses and working papers. The paper included four axes which contain: introductory part, the Paper theortical frame work, privatization experience in the Sudan , in addition the case study before and after privatiztion, beside the results and recommendations. The Paper finding that privatization of the company realized some positive results such as the increase in the company rates of the profitability and the improvement of the efficiency of productivity, However from the other side it contributed in increase of unemployment ,and did not contribute positively neither to the national income nor to the improvement of balance of payments.
Keywords: Privatization, economic reform, productive efficiency, structural adjustment, public sector, private sector.
JEL Classification: K23, G00, G18.
Cite as: Ahmed, M. Ab. M. (2019). The impact of privatization policy on the economic performance of the Establishment in Sudan (Case Study on SATA Company). Financial Markets, Institutions and Risks, 3(3), 98-112. http://doi.org/10.21272/fmir.3(3).98-112.2019.