Source: Mutapa targets long-term capital to drive key sectors – herald
Michael Tome
Business Reporter
The Mutapa Investment Fund will intensify efforts to mobilise long-term capital in 2026 to support growth across key sectors, including mining, energy, logistics, and manufacturing, to drive Zimbabwe’s national development agenda.
Presenting the fund’s 2025 financial results, MIF Chief Executive Officer Dr John Mangudya stated that the institution is shifting its focus toward scaling up funding initiatives aligned with the National Development Strategy 2 (NDS2) and Vision 2030.
This renewed funding drive follows what the fund described as “measurable progress” in restructuring and repositioning its portfolio companies to improve efficiency, governance, and sustainability.
During the year under review, MIF undertook a major restructuring within its mineral resources clusters — Kuvimba Mining House and Defold — reorganising them into commodity-focused entities.
These now span gold, platinum group metals (PGMs), base metals, energy minerals, agro-minerals, frontier resources, and technology metals. The move is expected to enhance operational focus while improving the entities’ attractiveness to investors and strategic partners.
In the energy sector, the unbundling of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Zimbabwe Power Company (ZPC) and ZESA Holdings into a single vertically integrated entity is expected to strengthen coordination across the electricity value chain and enhance long-term energy security.
The infrastructure cluster also recorded progress, with revitalization programs initiated at the National Railways of Zimbabwe (NRZ) and ZUPCO aimed at restoring operational efficiency and improving service delivery.
At Air Zimbabwe, restructuring efforts are underway, including the pursuit of strategic alliances with regional and international partners to boost technical capacity and commercial viability.
In the agriculture and industrials cluster, MIF prioritised the rehabilitation of the fertiliser value chain to support productivity and food security, with targeted recapitalisation beginning to stabilise operations and improve output. In the financial services segment, the Fund extended credit lines to stimulate lending while also undertaking asset valuations across its property portfolio.
“In 2026, we expect to intensify our efforts to raise long-term funding for mining expansion, energy rehabilitation, logistics rehabilitation, and industrial sector revival that are in sync with NDS2 and Vision 2030,” said Dr Mangudya.
MIF Chairman Dr Chipo Mtasa noted that the fund will maintain its transformation momentum while positioning itself to attract global capital.
“Key priorities for 2026 include: scaling up investments in mine expansion, supporting critical upgrades in the energy sector, modernising national logistics and infrastructure, and revitalising industrial production to enhance resilience and competitiveness,” Dr Mtasa said.
The fund’s financial results for the year ended December 31, 2025, showed significant growth, underpinned by restructuring gains and improved asset valuations. MIF posted a surplus after tax of US$21.7 million, a sharp increase from the US$3.6 million recorded in 2024.
This performance was largely driven by dividend income of US$23.3 million and management and advisory fees amounting to US$26.6 million from investee companies.
Total comprehensive income surged to US$1.4 billion, supported by substantial fair value gains across the fund’s asset base — particularly within the mining portfolio, which benefited from firm global commodity prices.
Additional valuation gains were realised from land and buildings, reflecting the maturation of the fund’s asset valuation framework established following its formation in September 2023.
Total assets grew to US$16.5 billion from US$14.9 billion in 2024, largely anchored by core investments in subsidiaries valued at US$16.2 billion, alongside an expanding loan book and marketable securities portfolio.
Funds and reserves rose to US$15.2 billion, reinforcing MIF’s strong capital position, while its gearing ratio remained low at 8 percent, signalling a cautious approach to borrowing.
MIF stated that it continues to strengthen internal controls, risk management systems, and financial reporting processes to ensure transparency and accountability. The fund emphasised that high-quality financial reporting remains critical in building stakeholder confidence and supporting effective oversight.
With a strengthened balance sheet and ongoing restructuring efforts, MIF is positioning itself as a central vehicle for mobilising capital and driving Zimbabwe’s economic transformation.
Its ability to attract long-term capital and execute its restructuring strategy will be key to unlocking value in state-owned enterprises and accelerating progress toward national development targets.
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