Mangudya says Mutapa Fund is a game of wealth creation; goes beyond parastatals
Business Reporter
ACCOMPLISHED banker and Mutapa Investment Fund CEO, Doctor John Mangudya has underscored the former is not just about parastatals management but goes beyond to deepen strengths in matters of wealth creation.
The MIF is a pool of resources i.e. public equities, commodity royalties and allocations from the government that will be invested for the future.
The history of the fund can be traced back to 2014 when the Sovereign Wealth Fund Act was enacted. The fund has very clear objectives such as to invest for future generations and support the country’s development goals amongst others.
Recently, Mangudya said MIF will be run via a 360 degrees management approach which not only focuses of parastatals revival but wealth creation opportunities.
“If you look at the (MIF) Act, it says the Sovereign Wealth Fund — which is the MIF — was capitalised by the transfer of State-owned enterprises into Mutapa.
“But then what do we do with the money that we get from these entities? We can invest it in any other transaction that we believe is good for the country.It is good to make more money. That is why it is said in the statutes that we are able to even purchase shares outside the country.
“We want to invest in, say, the stock exchange in New York or in London or South Africa. If we think it is good money, we will do that. We are not confined to the State-owned enterprises,” he said.
Mangudya said his mandate was to reverse this trend and restore these parastatal firms to their former prominence. Many of them are saddled with legacy debts.
“That is why the MIF was formed — to transform these State-owned enterprises so that they can go back to the glory years by ensuring that we sweat their assets and transform the way they are doing business.By so doing, we also increase their value and increase wealth for the people of Zimbabwe.
“What we have said is we could ensure they go back to where they were before and surpass it,” the former central bank chief said.
He projects that within five years, state firms could contribute between 30% and 40% to GDP.
“We want to go back to where we were before. I am only saying it is not insurmountable. It is doable,” Mangudya added.
Firms under MIF include the National Railways of Zimbabwe, Air Zimbabwe, Zimbabwe United Passenger Company, Cottco, Kuvimba Mining House, Silo Investments, National Oil Company of Zimbabwe, PetroTrade, POSB, TelOne, Arda Seeds, Zimbabwe Power Company, Powertel Communications, Allied Timbers, Telecel, Industrial Development Corporation Hwange Colliery Company Limited, power utility Zesa Holdings and Fidelity Gold Refinery.
