Business Reporter
THE Mutapa Investment Fund (MIF) has tabled plans to adopt a work ethic tilted towards pro-poor generational wealth creation.
Known as the parastatals game-changer, 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 dates back to 2014 when the Sovereign Wealth Fund Act was enacted with very clear objectives such as to invest for future generations and support the country’s development goals amongst others.
To date , 29 State Enterprises have been placed under the fund with the inaugural chief executive officer, outgoing Reserve Bank of Zimbabwe governor John Mangudya tasked to give direction in turning around these institutions.
Speaking via the Fund’s newsletter , MIF founding CEO Dr John Mangudya said in the long term, the fund intends to deliver meaningful dividends to the last man on the ground.
“Once the entities are commercially viable and profitable , they would reduce their dependence on Government support, freeing up resources for other priorities.Secondly increased production will lead to more employment opportunities and a more resilient economy.
“Third, Mutapa will contribute to achieving the objectives of the National Development Strategy and aspirations of Vision 2030by increasing Gross Domestic Product per apita income,” he said.
The former RBZ exchequer said the MIF had since identified opportunities for consolidation and clustering of similar entities to improve efficiency , reduce costs and duplication.
“We see potential for consolidation and clustering of entities in order to realise maximum benefits from entities under the fund.On the consolidation of entities, Mutapa has successfully clustered 62 entities , including subsidiaries and state invested enterprises into six key strategic sectors to optimise benefits,” he said .
