HARARE – Zimbabwe’s sovereign wealth manager, the Mutapa Investment Fund, has released its first set of audited financial statements, showing it has mobilised more than US$1 billion in its inaugural year of effective operations to support the recapitalisation and turnaround of State-owned enterprises, according to State media.
The fund reported a gross asset value of about US$16 billion and a fair value of US$15 billion as at December 31, 2024. However, it estimates that more than US$10 billion is required to fully recapitalise the companies under its control, underscoring the scale of investment needed to restore viability across key sectors of the economy.
President Emmerson Mnangagwa, writing in the foreword to the audited accounts, said the establishment of Mutapa was a deliberate reform aimed at consolidating Zimbabwe’s commercial assets under a professionally run sovereign wealth fund, separating ownership from policy and regulation.
“For too long, fragmented ownership across multiple ministries created inefficiencies, delayed reforms and weakened accountability,” the President said, adding that international experience shows that centralised, commercially oriented ownership structures deliver better results.
State media reported that Zimbabwe modelled Mutapa on global peers such as Singapore’s Temasek Holdings, Malaysia’s Khazanah Nasional, Ethiopia Investment Holdings and Kazakhstan’s Samruk-Kazyna. These entities, the President noted, demonstrate how strong governance, operational independence and professional investment management can unlock value and attract long-term capital.
Mutapa’s creation was informed by recommendations from the State Enterprises Restructuring Agency and supported by the African Development Bank, which helped shape its centralised ownership model. Under this framework, line ministries retain responsibility for policy and regulation, while the fund acts as shareholder, a separation the President said was critical to the success of State-owned enterprise reforms.
The fund is expected to play a strategic role in sectors considered vital to economic growth, including energy, mining, infrastructure, agriculture and manufacturing, particularly the fertiliser value chain. These sectors, according to the President, are central to job creation and improved livelihoods.
Mutapa chairperson Mrs Chipo Mutasa said the maiden financial statements were independently audited and present a true and fair view of the fund’s financial position and performance. She acknowledged that the inaugural audit reflects the diverse accounting and operational practices inherited from the State-owned enterprises transferred into the fund.
“Going forward, the fund is committed to harmonising policies, systems and governance practices across the portfolio to enhance transparency, consistency and accountability,” Mrs Mutasa said, adding that this process is essential for sustainable value creation and national development.
She said Mutapa’s investment philosophy is aligned with Zimbabwe’s development objectives, focusing on deploying capital into economic enablers such as energy and logistics, as well as sectors that drive industrialisation, exports and innovation. According to State media, the fund is pursuing a dual mandate of achieving sustainable financial returns while delivering broad-based socio-economic impact.
Chief executive officer Dr John Mangudya said Mutapa’s first year of operation was characterised by diagnostic assessments, portfolio valuation and strategic repositioning aimed at reviving and strengthening investee companies. He confirmed the US$16 billion gross asset value and said governance, risk management and operational efficiency were prioritised during 2024.
“These efforts are already yielding measurable improvements in performance, transparency and accountability,” Dr Mangudya said, noting progress in sectors such as energy, mining, infrastructure, telecommunications and agriculture. He added that the fund is focused on securing more than 24,000 jobs across its portfolio companies.
State media reported that during its maiden year of effective operation, which began on May 1, 2024, Mutapa recorded a surplus of US$3.6 million and total comprehensive income of US$8 million. Improved governance at investee entities enabled some companies in the trading, energy and financial services clusters to declare dividends totalling US$5.8 million in the 15 months to December 31, 2024.
Mutapa said it has made progress in stabilising and restructuring its portfolio but remains challenged by legacy debts, governance weaknesses at some entities and liquidity constraints. Its strategic focus is now shifting from planning to execution, with emphasis on enforcing governance reforms, enhancing portfolio monitoring and driving value creation through targeted investments and partnerships.
The fund was originally established in 2014 as the Sovereign Wealth Fund of Zimbabwe and was operationalised and renamed Mutapa Investment Fund in September 2023. It was capitalised through the transfer of shares in 30 State-owned enterprises and investments.
Its portfolio spans mining, ICT, banking and finance, agriculture, energy, transport and real estate. Key entities include Kuvimba Mining House, ZESA Holdings, the National Railways of Zimbabwe, ZUPCO, Air Zimbabwe, NetOne, TelOne, POSB, AFC Holdings, Fidelity Gold Refinery, Cottco Holdings and Hwange Colliery Company.
According to State media, the US$1 billion raised to date reflects Mutapa’s ability to leverage its balance sheet to attract funding through debt, equity, public-private partnerships and joint ventures with development finance institutions and private investors.
President Mnangagwa said the reforms underpinning Mutapa are part of the Government’s broader State-owned enterprises reform agenda and Vision 2030, which seeks to transform Zimbabwe into an upper-middle-income economy. He noted that while State enterprises once contributed up to 40 percent of GDP in the 1990s, their share had fallen below 20 percent by 2024, highlighting the need for a modern, efficient and commercially viable approach to managing national assets.