The Government will undertake a thorough review of all laws related to State-owned entities (SOEs) managed under the Mutapa Investment Fund to address inconsistencies, reduce overlaps, and streamline their operations, according to Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube.
This review is prompted by the recent transfer of various entities to the fund, which has underscored the need for a cohesive legal framework to ensure effective management and oversight of these crucial economic assets.
Concerns have been raised about the overlapping regulations affecting these companies, potentially impacting their operational efficiency and transparency.
Professor Ncube outlined in the 2025 Budget Strategy Paper that a detailed assessment of the legal framework governing SOEs will be conducted to correct discrepancies and overlaps, and to clarify operational guidelines for all companies under the fund.
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As part of this process, Mutapa will implement a governance structure aimed at promoting strong corporate governance, improving transparency, and optimizing resource allocation to better align with national goals.
The consolidation of State entities under the fund is seen as a vital move to enhance the performance of SOEs by ensuring a disciplined approach to resource management in support of national objectives.
The fund will carry out a diagnostic review of current operations to develop strategies for improved performance, including creating new products, establishing robust financial structures for specific projects, and engaging strategic investment partners, particularly in the natural resources sector.
The Sovereign Wealth Fund Act (Chapter 22:20), which established Zimbabwe’s Sovereign Wealth Fund in 2015, saw limited progress due to ongoing efforts to find efficient capitalization methods.
Following extensive consultations, President Mnangagwa has taken decisive action to operationalize and adequately fund the Mutapa Investment Fund, including amending the Sovereign Wealth Fund Act through Statutory Instrument 56 of 2023. This involved transferring Government shares in 22 entities to the Mutapa Investment Fund and renaming it from the Sovereign Wealth Fund of Zimbabwe to the Mutapa Investment Fund.
The fund is now undergoing significant restructuring, including the appointment of new boards to improve strategic direction and governance. Mutapa CEO Dr. John Mangudya recently highlighted the focus on optimizing the fund’s operations for wealth creation and long-term economic stability.
Dr. Mangudya, who previously served as the Governor of the Reserve Bank of Zimbabwe, stressed the importance of appointing board members with the right expertise to support the fund’s objectives. The fund is conducting rigorous background checks and further vetting by relevant authorities for prospective board members.
Entities now under the Mutapa Investment Fund include NetOne, National Railways of Zimbabwe, Air Zimbabwe, TelOne, Cottco, National Oil Company of Zimbabwe, Cold Storage Company, Fidelity Gold Refinery, Homelink, Zimbabwe Power Company, the Industrial Development Corporation of Zimbabwe, and Hwange Colliery Company Limited (now HCCL Holdings).
The Mutapa Investment Fund is seen as a key element in stabilizing the economy over the medium to long term, with its role in enhancing the productivity of its entities being crucial for currency stability and overall economic resilience.
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