By Staff Reporter
ZIMBABWE United Passengers Company (Zupco) is set to start fixing part of its 100 buses following the operational guidance by the Mutapa Investment Fund (MIF).
The MIF is Zimbabwe’s sovereign wealth fund, which is a pool of resources that the government invests for the future. The fund was established in 2015 and was formerly known as the Sovereign Wealth Fund of Zimbabwe.
It was renamed in 2023 after the re-election of President Emmerson Dambudzo Mnangagwa.
Apart from ZUPCO, some of the MIF’s assets include public equities, commodity royalties, and allocations from the government. The fund’s initial capital included shares in 20 state-owned enterprises, such as Hwange Colliery, National Railways of Zimbabwe, and NetOne.
Prior to the coming on board of the MIF around April 2024, most SOEs were lacking consistent operational direction.
Successive Ministers running the SOEs over the years lacked the prowess for long term management due to capped terms of office.
Zupco was this year moved to Mutapa Investment Fund (MIF) to boost its operations as part of turnaround strategies
Speaking on the development recently, MIF CEO, Dr John Mangudya said his dream is to see a revived ZUPCO.
“Mutapa Investment Fund is committed to see Zupco operations improving through good corporate governance framework, accountability and transparency. Legacy debt obligations of the company are being addressed as part for modern operations on profit margins,” he said.
ZUPCO CEO, George Chigora also said plans are underway to import spare parts for 100 grounded buses.
Chigora made the revelations during an interview with NewsDay Weekender recently, saying the public transporter has 300 buses plying both urban-rural and intercity routes.
“Our fleet is made up of 400 and out of these, 100 buses are grounded due to lack of spares, tyres among others,” he said.
“We are working on plans to take them back on the road again and service all our routes effectively.
“As part of our mandate, we have made plans to import spares on our own as a company.”
Chigora stated that efforts are afoot to make the dream a reality within the first half of 2025.
“Logistically, it is going to help us save financially than going through third parties, where taxes will be doubled on our part,” Chigora, an accountant by profession, said.
“We have done our homework, where our procurement and loss control departments will work on modalities to help us curb financial leakages.”
The latest move is part of the public transporter’s efforts to boost its fleet and workforce.
Chigora indicated that they would purchase more 30-seater buses as part of intercity routes.
“We need a smaller capacity fleet that will service these routes during off-peak times,” he said.
“It will help us to effectively service our routes as a public transporter.”
Zupco has been underperforming due to financial leakages, which has added to low worker morale, among other challenges, but Chigora made assurances that there were positive signs.
“Our financial inflows are improving and we are grateful from the support we are getting from government as a major shareholder,” he said.
“Admittedly, Zupco is being owed some monies by debtors that I am personally pushing to pay what is due to us.”
Chigora has targeted that every depot should be self-financing and making profit for its workforce.
“We are winning despite the economic crunch,” he said, painting a rosy picture of the once giant transporter.
Some workers welcomed the move to import spares for grounded fleet.
“Zupco buses are mainly for hiring due to low costs and we hope that the grounded buses will be repaired on time to continue urban-rural routes that have been neglected of late,” said a worker speaking on condition that he is not named.
