MIF deal roars to life as Air Zim plane lands in London…. What are the lessons for Africa?

By Alois  Vinga

THE Mutapa Investment Fund’s (MIF) assisted deal for Air Zimbabwe has roared to life after Airbus A330-300 successfully touched the ground in London Thursday morning.

Since its inception, the MIF has breathed life into Air Zimbabwe by acting as its new corporate owner and financial backer, helping broker an aircraft acquisition and leasing framework—including an Airbus A330-300—to restart the direct Harare-to-London route after a 14-year break.

After years of stagnancy, the Zimbabwean government transferred Air Zimbabwe into the Sovereign Wealth Fund Portfolio to stabilize its operations.

The Dr John Mangudya led MIF has backed a US$775,5 million five year plan to replace aging Boeing planes with modern, fuel-efficient aircraft.

The wide body airline departed from Robert Mugabe International Airport Wednesday evening ferrying on board Transport Minister Felix Mhona, Deputy Tourism Minister, Tongai Mnangagwa, the Charge d’affaires of the British Embassy in Harare Jo Abbot.

“This landing is a milestone in Zimbabwe’s re-engagement journey — reconnecting our people, opening new avenues for trade and tourism, and reaffirming our place in the global aviation network,” Mhona said.

Wet Lease Lessons for Africa?

Restoring a route the national carrier last flew in early 2012, the airline says the schedule is a three flights a week, departing Harare on Sundays, Wednesdays and Fridays, with return services from Gatwick’s South Terminal on Mondays, Thursdays and Saturdays.

The route was suspended over a combination of financial pressure at the airline and evolving European regulatory requirements, which had effectively kept Air Zimbabwe out of the United Kingdom and European Union airspace since 2017.

Flight experts believe that one more flight three times a week is a modest addition to international aviation capacity. This is because a direct flight lowers the cost and time of moving investors, business travelers, exporters and returning diaspora between two markets, and those savings compound across every sector that depends on people and goods moving efficiently between Zimbabwe and one of the world’s lager financial centers.

The United Kingdom remains one of Zimbabwe’s more significant markets for tourism trade, investment and diaspora remittances, and hosts one of the largest diaspora communities anywhere in the world.

The MIF leasing capacity rather than 100% purchase comes in handy , reflecting strategic shift in how a smaller carrier like Air Zimbabwe has found a strategic way to re-enter the long haul market.

Doctor Mangudya  and his team were realistic of the fact that restoring wide body capability from zero is a capital intensive task for an airline which has endured decades long setbacks.

Accordingly, the Wet Lease and ACMI arrangement offered a lower risk entry point, enabling Air Zimbabwe to restore the Harare –London commercial viability while setting a breathing luanchpad for larger investment of owning and maintaining long –haul aircraft outright.

The Wet Lease arrangement will be a game changer not only for Air Zimbabwe but other carriers across the continent.