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Business Reporter
WealthAccess Investment Managers, a Zimbabwean asset management firm, says it will remodel its focus to include infrastructure finance as it seeks to move away from the traditional fund management model, which is mainly focused on equities and properties.
The Securities and Exchange Commission of Zimbabwe (SecZim) licensed firm has since grown its portfolio to over US$100 million with a project pipeline covering rail, water, roads and energy infrastructure.
Chief executive officer Mr Takudzwa Mhlanga said while the strength and efficacy of Zimbabwe’s asset management cannot be questioned, WealthAccess is a targeted private equity fund that will mainly play in the infrastructure space using the expertise within the company, its shareholders and private equity partners.
“We have a strong focus on both finance and engineering, and this gives us a technical advantage in our investment approach. We have as many engineers as we do finance people in our team,” he said.
WealthAccess was licenced by SecZim in 2022, and in 2023, it was the majority of its shareholding acquired by a Middle Eastern investment fund with interests in infrastructure development and investments.
Mr Mhlanga was in the Middle East for the greater part of a decade, where he focused on energy and infrastructure investing.
He trained as an electrical engineer and, after spending time at Harvard University, held executive positions at TOTALEnergies, Enerwhere Sustainable Energy, a leading solar energy company in the Middle East and Cleanmax, an Indian energy firm.
The firm is chaired by former deputy governor of the Reserve Bank of Zimbabwe (RBZ), Dr Kupikile Mlambo, who also chairs the Infrastructure Development Bank of Zimbabwe (IDBZ).
The company will soon rebrand to Rulethu Investment Managers to reflect the changes in its shareholding.
Mr Mhlanga said the firm aims to unleash the potential of infrastructure financing in Zimbabwe by investing in companies and projects that are driving infrastructure development.
“This actually involves strategic holdings in primary industry and trading,” he said.
He noted that infrastructure funding has long-term performance and is a resilient asset class even in economic downturns.
“The long-term nature of infrastructure assets, with long-term contracts, would ride out any volatility and would be in a strong position when normalcy returns,” said Mr Mhlanga.
To fund infrastructure, central governments and local authorities raise debt that is paid back over 30 to 40 years.
“However, a lot of African governments, including Zimbabwe’s, do not have this ability; thus, a lot of the infrastructure we see is funded in the same financial period it is executed. It is painful to the government, the taxpayer, and ratepayers, and we wish to fill this gap,” said Mr Mhlanga.
This is in line with calls by the government for more capital markets players’ involvement in the infrastructure development sector.
Online Reporter