Abstract
The strengthening of democratic governance institutions is a key factor for any development
initiative. With these institutions in place, accountability becomes a yardstick to achieve greater results.
This article therefore set out to explore the impact that decentralisation has on Public Enterprises.
Decentralisation being an instrument of good governance, the article want to investigate if it applicability
on state own enterprises could stimulate economic development. A policy of decentralisation could be
considered as an important tool for economic development if the process is adequately implemented. Public
enterprises were put in place in many countries to contribute to social development. However, past studies
have shown that, public enterprises have not performed well over the past fifty year or so. Many failed
because of lack of transparency and accountability. The central question around the thesis is why these
public enterprises did not achieve the required results for which they created and what is needed for
corrective actions. The article concludes by proposing that, In order to ensure sustainability and economic
expediency, it is important to consider decentralisation as a condition for public enterprises to achieve
developmental results. The paper is divided into five major parts: The first part introduces the topic, the
second part argues about the rationale of decentralisation for the sustainability of public enterprises.