In an ambitious move to revitalize Zimbabwe’s state-owned enterprises, the Mutapa Investment Fund (MIF) has announced the introduction of robust governance systems designed to ensure commercial viability and wealth creation for the nation. Spearheaded by the outgoing Reserve Bank of Zimbabwe (RBZ) governor and newly appointed MIF CEO, John Mangudya, the initiative marks the beginning of a comprehensive overhaul aimed at enhancing the performance and profitability of approximately 20 parastatals currently under its oversight.
The MIF, which transitioned from the Sovereign Wealth Fund of Zimbabwe following President Emmerson Mnangagwa’s re-election, operates under the legal framework of the Sovereign Wealth Fund Act (Chapter 22:20). This strategic rebranding, enacted through Statutory Instrument 156 of 2023, underscores the government’s commitment to leveraging state assets for the benefit of Zimbabweans now and in the future.
Mangudya’s vision for the MIF is clear: to transform these entities into competitive, profit-generating ventures that can stand toe-to-toe with their counterparts in the private sector. Citing the National Oil Company (NOIC) as an example, he emphasized the necessity for state-owned companies to not only compete but to excel in their respective industries, thereby contributing significantly to the nation’s economy.
To achieve these lofty goals, the MIF has established several key committees, including those focused on investment, governance, and human resources. These committees are tasked with implementing and monitoring adherence to best practices and policies across all entities within the Fund’s portfolio. By fostering a culture of accountability and consistency, the MIF aims to ensure that each parastatal under its wing operates at its highest potential.
Mangudya also highlighted the Fund’s proactive approach to identifying and rescuing struggling parastatals. Through a meticulous analysis of their balance sheets, the MIF plans to unlock hidden value and explore new avenues for growth and expansion. This strategy is not only about reclaiming the former glory of these enterprises, which once contributed up to 40% of Zimbabwe’s GDP in the two decades following independence in 1980, but also about laying a solid foundation for sustainable development and prosperity.
The decline of these parastatals over the years, attributed to financial mismanagement and the absence of effective governance frameworks, has had a detrimental impact on Zimbabwe’s economy. However, with the MIF’s strategic interventions and the introduction of stringent governance measures, there is renewed hope for their revival.
