Online Reporter
Sunday Mail Reporter
Mutapa Investment Fund (MIF) says it requires more than US$10 billion to recapitalise State-owned enterprises under its portfolio, modernise ageing infrastructure and unlock growth across key sectors of the economy.
In its annual report and first set of audited financial statements released last week, Zimbabwe’s sovereign wealth fund said it has so far mobilised US$1 billion in its first year of effective operation, providing initial funding for recapitalisation, capital expansion and infrastructure refurbishment across its asset clusters.
MIF said the scale of capital required reflects the long-standing underinvestment in many portfolio entities and the breadth of its mandate, which spans strategic sectors such as energy, mining, transport, telecommunications, banking, agriculture, industrials and real estate.
The fund said it has established a cluster-wide funding pipeline, prioritising projects that improve operational efficiency, modernise infrastructure and restore the productive capacity of State-owned enterprises.“Funding sources include debt, equity, public-private partnerships (PPPs) and joint ventures with development finance institutions, banks and private investors. Strategic capital deployment is aimed at supporting modernisation, operational efficiency and sustainable growth across clusters,” MIF said.
Broad strategic portfolio
MIF’s expansive portfolio includes some of Zimbabwe’s largest and most strategic commercial entities.
These include Kuvimba Mining House, with interests in gold, lithium, platinum and nickel; national power utility, ZESA Holdings; National Railways of Zimbabwe (NRZ); public transport operator, ZUPCO and national airline, Air Zimbabwe.
Other portfolio companies include NetOne and TelOne in the ICT sector; People’s Own Savings Bank (POSB) and AFC Holdings Limited in financial services; Fidelity Gold Refinery; Cottco Holdings; and Hwange Colliery Company.
Improving performance, returns
Despite the scale of recapitalisation required, MIF reported early financial gains during its maiden year of effective operation, which began on May 1, 2024.
The fund recorded a surplus of US$3,6 million and total comprehensive income of US$8 million. Improved corporate governance and operational controls also enabled several investee companies in the trading, energy and financial services clusters to declare dividends totalling US$5,8 million during the 15 months to December 31, 2024.
MIF said strengthening governance frameworks, risk management systems and operational efficiency across portfolio companies has already resulted in measurable improvements in performance, transparency and accountability, in line with Zimbabwe’s Vision 2030.
Governance reforms and audit outcomes
MIF chairperson Mrs Chipo Mutasa said the fund’s inaugural financial statements had been independently audited and present a true and fair view of its financial position.
“As this inaugural audit encompasses State-owned enterprises inherited by the fund, the outcomes reflect the diversity of accounting policies, operational practices and reporting frameworks previously applied across these entities,” said Mr Mutasa.
She said the fund was now prioritising the harmonisation and standardisation of policies, systems and governance practices across its portfolio to strengthen financial discipline, comparability and accountability.
“These measures are central to building a coherent, well-governed portfolio that supports sustainable value creation and advances national development objectives,” she said.
Strategic repositioning
Chief executive officer, Dr John Mangudya, said MIF, as Government’s principal investment arm, had spent its first year undertaking diagnostic assessments and portfolio valuations to inform turnaround and growth strategies for investee companies.
He said MIF had a gross asset value of US$16 billion and a fair value of US$15 billion as at December 31, 2024.
“Our investment strategy prioritises resilience, diversification and sustainable value creation,” he said.
“Inspired and empowered by the country’s vision of becoming a prosperous upper-middle-income economy by 2030, we strengthened and continued to enhance governance frameworks across our portfolio companies, enhanced risk management practices and deepened our focus on operational efficiency during 2024.
“These efforts are already yielding measurable improvements in performance, transparency and accountability.
“We also advanced several strategic initiatives aimed at unlocking value in key sectors such as energy, mining, infrastructure, telecommunications and agriculture.”
By mobilising capital, forging partnerships and supporting reforms within portfolio entities, Dr Mangudya said MIF was positioning State-owned assets to contribute more effectively to national development while delivering competitive returns.
He added that the fund remains committed to safeguarding more than 24 000 jobs across its portfolio companies as part of efforts to strengthen service delivery to citizens.
The fund was initially established in 2014 as the Sovereign Wealth Fund of Zimbabwe before being operationalised and renamed Mutapa Investment Fund on September 19, 2023. It was capitalised through the vesting of shares in 30 State-owned enterprises and investments previously held under Government asset portfolios.
