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Mutapa Fund not a looting machine but a capital powerhouse unit- Expert

Business Reporter

A FINANCIAL expert has implored the Mutapa Investment Fund’s (MIF) caretakers to make sure the fruits derived from the venture overtime are cascaded downwards for the benefit of the ordinary folk.

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.

Despite fears that the venture risks being abused, some sections of society believe that if properly managed, the MIF can serve as a trumpcard for an economy which has endured decades of isolation from the international community leaving many companies struggling to access affordable capital and lucrative markets.

Speaking to the media recently, finance and business analyst, Owen Mavengere said the MIF must aggressively advance economic growth and cascade the benefits derived to the last man on the ground.
“As the State Owned Enterprises (SOE) continue to improve their contribution to the GDP overtime, the fund must gravitate towards the days when the parastatals contributed 40% of our GDP. This in itself will have several downstream effects.

“Furthermore, the profits can be invested in critical infrastructure that directly benefits communities, supporting government initiatives such as health, social security, pension, and so on,” he said.

Given the size of the MIF and its entities, Mavengere said one of the low hanging fruits will be job creation and supporting local workforce development.

“As the entities continue to grow and improve, employment will increase, and the fund will have direct and indirect beneficiaries with the knock-on effects cascading to the citizens,” he said.

The business analyst added that the MIF and its entities, through its corporate social responsibility, may bolster community engagement programmes that address local issues and needs.

The first of its kind on the land, MIF currently has 29 SOE under its purview.

Former central bank governor, John Mangudya, who was appointed the MIF founding CEO, is expected to apply his expertise in kick-starting the billion dollar project following his recent appointment.

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