The Venezuelan government loosened its grasp on key food production enterprises by transferring the management of at least 13 food companies to private firms.
Reuters reported that the move overturned the nationalization efforts of these companies a decade ago. The shift was done to curb the mismanagement and corruption done under the supervision of government officials and improve economic productivity in light of US sanctions.
According to sources provided to Reuters, Maduro’s government still maintained ownership of struggling firms ranging from corn flour, dairy products, and canned tuna, to seeds but outsourced its operations to third parties by offering licenses in exchange for payment.
State officials emphasized that the arrangements are only rentals of industrial facilities or “strategic alliances” as lessee companies are not involved in the sales of shares.
The agreements were made under an anti-blockade law ratified by the country’s legislature in 2020 to increase private investments to select enterprises, especially to its key oil sector.
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