Business

‘Give  Mutapa Fund a chance to prove its worth’- Expert

Business Reporter

A financial expert says it is too early to judge the Mutapa Investment Fund (MIF) hinting the need for patience and give the organization enough space to settle.

MIF, formerly known as the Sovereign Wealth Fund of Zimbabwe is a Zimbabwean sovereign wealth fund formulated by the Sovereign Wealth Fund Act. It was renamed after the re-election of Emmerson Dambudzo Mnangagwa as the president of Zimbabwe, doing so by using Statutory Instrument 156 of 2023.

However, several stakeholders have generated a series of speculative fears linking the fund to possible abuse of finances among other risks.

Just recently, the International Monetary Fund (IMF) called for the strengthened governance framework for the newly constituted MIF  will be key for the stabilisation effort.

The Bretton Woods institution said steps to this end should include ensuring that the fund’s mandate is clearly defined and aligned with the National Development Strategy; enhancing its transparency and ensuring full integration in the budget process (Mutapa’s annual operating budget, capital investment, asset sales, and borrowing plans should be subject to approval by the MoFEDIP.

However, a financial analyst, Owen Mavengere says stakeholders must exercise patience and give the MIF a chance to launch its operations considering the mammoth tasks lying ahead of the MIF.

“In the short-term period 6-12 months ,the MIF has to begin with immediate actions such as implementing transparency measures, conducting audits, and setting up the oversight bodies in the subsidiaries. Initial steps in digitising processes and reducing red tape can also start in this period.

“In the  Medium-term (1-3 years): Focus on deeper structural changes, including full digitisation of processes, comprehensive workforce optimisation, and instilling a culture of accountability and efficiency. Long-term (3-5 years): Continue to refine processes, monitor progress, and make adjustments as needed. Institutionalise best practices to ensure long-lasting improvements and sustain the momentum of change,” he said.

The MIF is so far just less than three months old , effectively justifying the need for ample time before meaningful work begins to bear fruit.

More on Humanitarian Post:

Leave a Reply

Back to top button