Golden Sibanda
Business News Editor
MUTAPA Investment Fund, Zimbabwe’s sovereign wealth manager, has produced its first set of audited financial statements, indicating that has since raised US$1 billion in its inaugural year of effective operation, to support recapitalisation across its asset clusters.
The fund, which had a gross asset value of US$16 billion and a fair value of US$15 billion as at December 31, 2024, requires more than US$10 billion to recapitalise the companies it owns and controls.
Against this background, the President underscored the rationale behind his administration’s decision to set up Mutapa, as part of a bold and strategic initiative to consolidate the country’s commercial assets under a sovereign wealth fund with a professional investment team.
“For too long, fragmented ownership across multiple ministries created inefficiencies, delayed reforms, and weakened accountability. Global best practice demonstrates that centralising ownership under a commercially oriented entity, while leaving policy and regulation to line ministries, delivers better outcomes,” President Mnangagwa said.
Zimbabwe, the President noted, modelled Mutapa along successful cases such as Ethiopia Investment Holdings, Temasek Holdings in Singapore, Khazanah Nasional in Malaysia and Samruk-Kazyna JSC in Kazakhstan, to mention a few.
He said these successful examples showed how disciplined governance, operational independence, and professional investment management can unlock value, attract investment and accelerate economic transformation.
“Mutapa Investment Fund adopts this proven approach, ensuring that our national assets are managed with transparency, efficiency, and a long-term view,” he said.
The creation of Mutapa was also informed by extensive research and recommendations from the State Enterprises Restructuring Agency and supported by the African Development Bank.
The expert guidance helped shape the centralised ownership model that now underpins Mutapa’s operating model.
“This model is designed to enhance governance and accountability by minimising bureaucracy, political interference and eliminating reliance on the fiscus by companies under the fund, and rather ensuring increased and sustainable contribution to Treasury, employment creation and sustainable delivery of key services,” President Mnangagwa said.
Line ministries would continue to play a supportive and facilitative role in policy formulation and regulation, the President said.
He stressed that the segregation of roles and responsibilities between the line ministers as policy makers and regulators and the fund as the shareholder of the portfolio companies under it is integral to the success of this important reform of the State companies.
“In that regard, to build a resilient and competitive Zimbabwe, it is critical that role clarity is intentionally fostered and my Government is fully committed to the investment model and mandate at Mutapa Investment Fund,” the President said.
The President said Mutapa would continue to be a key driver of strategic investments in energy, mining, infrastructure, agriculture and manufacturing, including the fertiliser value chain.
“These sectors are the engines of our growth, and their success will shape the livelihoods of millions of Zimbabweans. I urge the fund to remain steadfast in its commitment to creativity, innovation, sustainability, and value creation.”
Mutapa chairperson Mr Chipo Mutasa said the fund’s maiden financial statements had been independently audited and presented a true and fair view of its financial position and performance for the period under review.
“As this inaugural audit encompasses State-owned enterprises inherited by the fund, the audit outcomes reflect the diversity of accounting policies, operational practices and reporting frameworks previously applied across these entities.
“Looking ahead, the fund is committed to the progressive harmonisation and standardisation of policies, systems, and governance practices across its portfolio. Under the Fund’s stewardship, this harmonisation will enhance consistency, transparency, and comparability, while strengthening financial discipline 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.
Mrs Mutasa said the fund’s investment philosophy was firmly aligned with Zimbabwe’s national development aspirations.
By strategically deploying capital into key economic enablers, she said, including energy and logistics, and into sectors that drive industrialisation, export competitiveness and innovation, Mutapa is contributing meaningfully to economic transformation.
“Our approach recognises that sustainable financial returns and broad-based socio-economic impact are mutually reinforcing. Through this dual mandate, the Fund is helping to unlock productive capacity, stimulate inclusive growth, and strengthen the foundations of a resilient economy,” Mrs Mutasa said.
In a world characterised by economic volatility and structural change, Mrs Mutasa said the fund remained resolutely focused on the long-term vision to build a resilient and diversified investment portfolio that secures enduring value for Zimbabwe, transcending economic cycles and generations.
“We are committed to disciplined capital allocation, strategic patience, and forward-looking investment choices that balance opportunity with resilience. In doing so, the Fund is being positioned as a lasting cornerstone of national development and intergenerational wealth creation,” she said.
Chief executive officer, Dr John Mangudya, said as the principal investment arm of the Government of Zimbabwe, Mutapa’s mandate was to manage the Government’s portfolio of commercial companies.
Further, the fund’s role is to provide financial and strategic oversight to the asset portfolio to maximise value for the long-term benefit of Zimbabwe’s current and future generations, while supporting the country’s broader economic transformation agenda.
He said the first year of operation had been one characterised by disciplined execution, strategic repositioning and conducting diagnostic assessment and valuation of the portfolio to come up with informed strategic imperatives to revive and strengthen the investee companies.
Dr Mangudya said Mutapa 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 continues to prioritise resilience, diversification and sustainable value creation. 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 new partnerships, and supporting reforms within our portfolio, we are positioning these assets to contribute more effectively to national development while delivering competitive returns,” Dr Mangudya said.
He said the fund remained committed to investing in sectors that drive productivity, enhance national competitiveness and support inclusive growth.
“We look forward to ensuring that the more than 24 000 jobs across the portfolio companies are secured to enhance service delivery to the Zimbabwean citizens,” he said.
Looking ahead, Dr Mangudya said Mutapa would continue to strengthen corporate governance and the financial performance of its investment portfolio companies, deepen engagement with stakeholders, and implement strategies that improve the contribution of the portfolio to national economic development in line with the aspirations of Vision 2030.
Mutapa says it has made significant progress in stabilising and restructuring its portfolio companies, with ongoing efforts to improve governance, operational efficiency and financial performance.
The fund, however, is acutely aware that challenges remain in addressing legacy debts, governance weaknesses at investee companies and liquidity constraints.
The fund’s strategic outlook focuses on transitioning from planning to execution, enhancing portfolio monitoring, enforcing governance reforms and driving value creation through targeted investments and collaborations.
The goal, Mutapa says, is to contribute meaningfully to Zimbabwe’s economic growth, fiscal stability, and long-term prosperity for current and future generations.
Initially established in 2014 by an Act of Parliament as the Sovereign Wealth Fund of Zimbabwe, the fund was operationalised and renamed Mutapa Investment Fund on September 19, 2023.
It was then capitalised through the vesting of shares in 30 State-owned enterprises and investments under the Government’s asset portfolios.
The fund says it maintained a cluster-wide funding pipeline, prioritising infrastructure refurbishment, capital expansion and recapitalisation initiatives.
Mutapa said the US$1 billion raised so far demonstrates its strategic positioning and potential to leverage its balance sheet to raise significant capital to support cluster operations.
“Funding sources include debt, equity, public-private partnerships, and joint ventures with development finance institutions, banks, and private investors.
“Strategic capital deployment aims to support modernisation, operational efficiency, and sustainable growth across clusters,” Mutapa said in the annual report.
Mutapa’s expansive portfolio spans several key sectors of the economy, such as mining, information communication technology, banking and finance, agriculture and industrials, energy and trading and real estate.
Notable cluster entities include Kuvimba Mining House, a mining conglomerate with assets in gold, lithium, platinum and nickel mines across Zimbabwe, ZESA Holdings together with its various subsidiaries, National Railways of Zimbabwe, Zimbabwe United Passenger Company ZUPCO, and national airline Air Zimbabwe.
Other portfolio members encompass NetOne Cellular and TelOne, major players in the mobile and fixed telecommunications and ICT sector, the People’s Own Savings Bank (POSB) and AFC Holdings Limited, key financial institutions, Fidelity Gold Refinery, the country’s sole gold refinery, Cottco Holdings, a major company in the cotton industry and Hwange Colliery Company, one of the largest and prominent coal mining entities.
The fund has already made meaningful progress on all fronts during its maiden year of effective operation, which commenced on May 1, 2024, as demonstrated by a surplus of US$3,6 million and a total comprehensive income of US$8 million.
Owing to improvements in corporate governance at the investee entities, some of Mutapa’s companies in the trading, energy and financial service clusters declared dividends amounting to US$5,8 million during the 15 months to December 31, 2024.
Inspired and empowered by the country’s vision of becoming a prosperous upper-middle-income economy by 2030, the fund has strengthened and continued to enhance governance frameworks across portfolio companies, enhanced risk management and deepened its focus on operational efficiency in 2024.
These efforts are already yielding measurable improvements in performance, transparency, and accountability, the fund says. President Mnangagwa noted the progress in his foreword to the fund’s inaugural set of audited financial accounts, encouraged by the strides the fund has made in strengthening governance frameworks, including portfolio rationalisation, improving transparency and embedding international best practices across the fund’s operations.
“Such reforms are vital to ensuring that our national assets are managed with integrity, professionalism, and accountability.
“The fund’s growing capacity to attract partnerships, both domestic and international, reflects increasing confidence in Zimbabwe’s economic trajectory and the opportunities our nation presents,” he said.
The establishment of Mutapa, the President said, was guided by the Government’s SOEs reforms agenda, as set out in the State Enterprises Reform Framework approved in 2018.
This was then incorporated in the country’s National Development Strategy (NDS1 and 2), as part of the broader target of Vision 2030, to transform Zimbabwe into an empowered upper-middle-income country.
President Mnangagwa said over the past four decades, State enterprises were an integral part of Zimbabwe’s economic development, as key enablers to the country’s productive sectors, powering industries, connecting communities and providing essential services.
“Up until the 1990s, they contributed significantly to the country’s GDP, contributing immensely to employment creation and infrastructure delivery. However, over time, the companies’ contribution to GDP dropped from 40 percent in the 1990’s to below 20 percent as of 2024.
“Meanwhile, global economic shifts, competitive markets and governance challenges have underscored the need for a modernised, efficient, commercially viable and transparent approach to managing national assets,” the President said.
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