Mutapa Fund can co-exist with other line ministries- Expert

Business Reporter

A finance expert has dismissed fears that the coming on board of the Mutapa Investment Fund (MIF) will prompt confusion and duplication of roles with line Ministries instead proposing they can still co-exist and maximise efficiencies.

Through various pieces of legislation, starting with the Presidential Powers Act, the Sovereign Wealth Fund of Zimbabwe was renamed to Mutapa Investment Fund (MIF), paving the way for repositioning the sovereign wealth fund.

Statutory Instrument (SI) 156 of 2023 brought about 2 state-owned enterprises (SOEs) under the huge umbrella of the MIF. Subsequently, SI 51 of 2024 brought in another seven, to make the MIF one of the largest ever corporate bodies in the history of Zimbabwe.

Almost 29 entities under the MIF in a development which has seen the market questioning how the fund is going to co-exist with other line ministries.

But in an exclusive interview with the Humanitarian Post , financial expert, Owen Mavengere said the entities co-existence with line Ministries would go a long way to maximise efficiencies.

“Ensuring that entities like Zimbabwe Electricity Supply Authority (ZESA) operate under regulatory oversight is not a negative factor. Whilst the ministries might not necessarily direct the day-to-day operations the role of the regulators will be key.

“The regulators will play a key role, keeping with the example of ZESA, which is to ensure a fair, transparent, efficient and cost-effective sector for the benefit of the consumers and the utilities or entities,” he said.

The analyst said Mutapa needs to undertake Audit and review as well as a comprehensive financial and operational audit of all entities under the fund to understand their current status and identify immediate areas for improvement.

Mavengere said there is also need to develop and begin implementation of a detailed strategic plan that addresses identified challenges, sets clear objectives, and outlines measurable goals for enhancing profitability and efficiency.

“Low hanging fruits can be picked focusing on high impact areas and initiation of dialogue with key stakeholders including employees, government officials, lenders, creditors, key stakeholders including the public to build trust and ensure transparency in the fund’s operations,” he added.

The MIF executive team is led accomplished banker and former Reserve Bank of Zimbabwe governor , Doctor John Mangudya.

He was appointed CEO at the end of his 10 years tenure at the helm of the central bank where he left an indelible legacy of keeping the country’s monetary policy above the waters in a highly challenged economic environment dogged by a series of setbacks.

As the inaugural Mutapa Fund CEO,Mangudya has a mammoth task ahead of him which include setting up governance systems and workflow structures which will ultimately revamp the ailing parastatals and return them to their past glory.

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