Business Reporter
PRESIDENT Emmerson Mnangagwa has taken a bold step to strengthen the Mutapa Investment Fund (MIF) capital base by adding seven more companies under the game-changer unit.
The MIF is seen by authorities as a potential vehicle to revamp state enterprises and create a strong capital base for thriving local companies to spur economic growth in the sanctions ravaged economy.
Formerly known as the Sovereign Wealth Fund of Zimbabwe (SWFZ) the MIF is a Zimbabwean sovereign wealth fund formulated by the Sovereign Wealth Fund Act (Chapter 22:20).
It is a state-owned investment fund established from the balance of payment surpluses, official foreign currency operations, the proceeds of privatisation, government transfer payments, fiscal surpluses and resource earnings from 20 parastatal entities under its purview.
In a notice recorded under Statutory Instrument 51/2024, President Emmerson Mnangagwa offered the MIF a lifeline by adding more entities to strengthen the institution’s capital base.
“This notice may be referred to as the SWFZ Amendment of Fourth Schedule Notice 2024.The Fourth Schedule Assets forming Part of Initial Capital of Mutapa Investment Fund to the SWFZ Act is amended by the addition of the following items-
“Aurex Private Limited,Export Credit Guarantee Corporation of Zimbabwe Private Limited,Fidelity Gold Refinery Private Limited,Homelink Private Limited,Homelink Finance Private Limited, ZESA Holdings Private Limited and ZESA Enterprises Private Limited,” the notice reads in part.
Despite sceptics fear against the initiative, a section of experts believe that the initiative is the only way to salvage fiscus blood sucking state enterprises which are now deeply embedded in retrogressive complacency culture.
Market watchers believe that the latest addition of more firms to the MIF portfolio will give it a strong takeoff springboard to realise its long term objectives.
The MIF is current being led by seasoned banker and economic expert, outgoing Reserve Bank of Zimbabwe governor ,Doctor John Mangudya.
