RHEL 7 hypervisor libvirtd service fails to start with error: Initialization of netcf state driver failed: internal error: failed to initialize netcf

Issue

• The libvirtd service fails to start and reports an error about netcf:

  # systemctl status libvirtd.service
  ● libvirtd.service - Virtualization daemon
     Loaded: loaded (/usr/lib/systemd/system/libvirtd.service; enabled; vendor preset: enabled)
     Active: inactive (dead) since Fri 2017-03-31 06:56:16 UTC; 1s ago
       Docs: man:libvirtd(8)
             http://libvirt.org
    Process: 22103 ExecStart=/usr/sbin/libvirtd $LIBVIRTD_ARGS (code=exited, status=0/SUCCESS)
   Main PID: 22103 (code=exited, status=0/SUCCESS)
  
  Mar 31 06:56:16 localhost systemd[1]: Starting Virtualization daemon...
  Mar 31 06:56:16 localhost systemd[1]: Started Virtualization daemon.
  Mar 31 06:56:16 localhost libvirtd[22103]: libvirt version: 2.0.0, package: 10.el7_3.2 (Red Hat, Inc. <http://bugzilla.redhat.com/bugzilla>, 2016-11-10-04:...edhat.com)
  Mar 31 06:56:16 localhost libvirtd[22103]: hostname: localhost
  Mar 31 06:56:16 localhost libvirtd[22103]: internal error: failed to initialize netcf
  Mar 31 06:56:16 localhost libvirtd[22103]: Initialization of netcf state driver failed: internal error: failed to initialize netcf
  Mar 31 06:56:16 localhost libvirtd[22103]: Driver state initialization failed