THE Mutapa Investment Fund (MIF) has devoted efforts to turn around the fortunes of State Owned Enterprises (SOEs) which had been relegated to the 'corporate graveyards'.
Zimbabwe's first Sovereign Wealth Fund's (SWF) origins can be traced back to a mining sector policy study conducted in 2012 that recommended the establishment of the fund to drive long-term investment leveraging on mining, natural and other resources that would anchor inclusive economic growth and development.
Formerly the SWF, the MIF was established by an Act of Parliament in 2014 called the Sovereign Wealth Fund Act (Chapter 22:20). In September 2023, it was renamed to Mutapa Investment Fund through Statutory Instrument 156 of 2023 by President Emmerson Mnangagwa using the Presidential Powers (Temporary Measures Act).
MIF chief executive officer, Dr John Mangudya, told state controlled media that said strategies to turn around some parastatals were employed in the fund's first year of existence.
"MIF is working on with its investee companies including putting in place a package for the procurement of buses by ZUPCO to augment Public transport.
"Working with the National Railways of Zimbabwe (NRZ) to rehabilitate rail infrastructure and rolling stock, promoting rewarding Joint Ventures especially in the mining sector, developing sustainable operational models at Cottco, Silo Foods, Air Zimbabwe and the Cold Storage Commission (CSC)," he said.
The entities mentioned by Mangudya were largely viewed as dead due to bad corporate governance with very little to offer to the country's fiscus after degenerating into tiny shadows of their former selves before the coming in of the MIF, prompting many to regard the current initiatives as mammoth graveyard resurrection efforts.
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MIF CEO said the fund has made great strides within the first year of its operations geared to transform the economic and financial performance of portfolio companies under its purview in order to drive sustainable growth and development.
Apart from rescuing the ailing companies, the fund has also completed a diagnostic assessment of its investee companies and has come up with a strategic plan to catalyse national building by the entities under MIF.
"For instance, the fund is closely working with the Zimbabwe Electricity Supply Authority (ZESA) to enhance energy security in Zimbabwe through various initiatives that include prepaid metering, net metering, smart metering and enhancing base load through the implementation of independent power producers projects that include rehabilitating of Hwange Units 1 to 6 aimed at increasing electricity by around 600MW.
"The fund is also focusing on strengthening board effectiveness, performance management and client -centric across its entities. Also, we are working on enhancing value for money practices by optimizing capital management and practices within the group," added Mangudya.
