daniel chigunwe
Business Writer
Government has expanded the reach of its Mutapa Investment Fund by adding assets from six key entities to the sovereign wealth fund’s portfolio, according to a Government Gazette published on Friday.
The move, which includes the prominent power utility ZESA Holdings, signals a potential boost to the fund’s ability to generate revenue and contribute to the country’s development.
Other entities are jewellery producer, Aurex Private Limited, Export Credit Guarantee Corporation of Zimbabwe, Fidelity Gold Refinery, HomeLink Private Limited and HomeLink Finance.
Established in 2014 under the Sovereign Wealth Fund Act, the Sovereign Wealth Fund was renamed Mutapa Investment Fund in 2023 through Statutory Instrument 156 of 2023.
Its purpose is to be a sovereign wealth fund, investing resources for future generations and supporting the country’s development, according to the Gazette.
Sources of funds include public equities, commodity royalties, and government allocations.
In 2023, the government made significant changes to the fund, including renaming it and granting itself more control over appointments.
These changes have sparked controversy, with some critics fearing the fund could be misused or become a drain on resources.
The Mutapa Investment Fund is still in its early stages and has not yet begun significant investment activities.
The validity of some of the assets it claims, such as shares in CAPS Holdings, is under dispute.
According to some analysts, the Mutapa Investment Fund has the potential to be a valuable tool for Zimbabwe’s economic development.
However, concerns about transparency and governance remain.
Mutapa is chaired by Chipo Mutasa, a veteran business executive and its chief executive is Dr John Mangudya, the outgoing governor of the Reserve Bank of Zimbabwe.
Bongani Ndlovu