Basically, privatization is selling government properties to private owners; this reduces or finishes the control of government to the affairs of the company or organization privatized. There are different advantages of privatization which include;
- There is improved efficiency as the organization competes freely in the market
- The organization lacks political interferences on its operation and thus can make decisions freely.
- In most cases, privatization is done to raise revenue. On the other hand, privatized organization compete without any favors from the government, and this leads to better customer service and innovation
- Management gets pressure from shareholders to perform; this leads to better-managed firms.