What is privatization?

Answer: 

Privatization, in a narrow sense means a partial or full transfer of ownership of a public enterprise to private buyers, through the sale of asserts of the enterprise or shares representing those assets.

Privatization, in a broad sense occurs when some or all the shares in a parastatal company are sold to individuals and companies in the private sector. But it also occurs when, for instance, no shares in public enterprises are sold, but private companies are allowed to compete in the provision of goods and services which were earlier reserved by law for government or public enterprises.