Business Reporter
FINANCE Minister, Mthuli Ncube Thursday hailed the economic impact generated by the Mutapa Investment Fund (MIF) despite its infancy.
Established in 2015 and first known as the Sovereign Wealth Fund, the MIF is Zimbabwe’s sovereign wealth fund, which is a pool of resources that the government invests for the future.
It was renamed in 2023 after the re-election of President Emmerson Dambudzo Mnangagwa.
Presenting the Mid-Term Budget Review before Parly Thursday, Ncube expressed confidence in the MIF’s potential to spur national sustainable growth.
He said to date; the Fund has achieved significant strides towards strengthening the governance frameworks and enhancing the financial performance of the portfolio companies under its ambit.
“The Fund has injected capital into a significant number of portfolio companies, most of which have started registering improved performance. The capital deployment to the portfolio companies is guided by the Investment Strategy of the Fund and the diagnostic assessment report, prioritising long-term value creation, stability and prosperity,” Ncube said.
Investments currently under consideration include procurement of buses for the Zimbabwe United Passenger Company (ZUPCO) to minimise public transport challenges, capitalisation of the National Railways of Zimbabwe (NRZ) to rehabilitate rail infrastructure and address rolling stock challenges, crafting of sustainable operational models for COTTCO, Air Zimbabwe, Cold Storage Company and Silo Food industries, among others.
“The Fund is also working with the Zimbabwe Electricity Supply Authority (ZESA) on a variety of initiatives to address power shortages, which include enhancing base load, together with implementation of prepaid, net and smart metering projects.
“Based on the current and projected investments in the energy sector, the Fund is optimistic that load shedding will be significantly minimised in the outlook period, not least because of the rehabilitation of Hwange Units 1 to 6 under a Rehabilitate Operate and Transfer concession agreement between Zimbabwe Power Company and Jindal Africa,” added Ncube.
