Highlight any four reasons why a government may set up parastatals to supply essential goods to its people

Why government sets up parastatals to provide essential services

  • Prevent exploitation of the public private businessmen
  • Provide goods and services that private enterpreneurs are unwilling to venture due to low profits involved
  • Provide large amount of capital(initial) where private organisation are not able to finance
  • Provide essential goods and services that are too sensitive to be left in the hands of a private sector
  • Stimulate economic development of the country providing the essential social overhead capital
  • Establish monopolies in areas of interest where high profits are involved



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