The Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, is preparing to acquire CAPS Holdings, a local healthcare and drug manufacturing company, according to reports from The Herald Finance & Business.
This development occurs despite a Supreme Court ruling from February that overturned a previous High Court order granting the State ownership and the authority to appoint directors to CAPS’ board. Government officials maintain that CAPS is a strategic asset for the State.
Negotiations for the acquisition will need to take place with Mr. Fred Mutanda, who controls an 88 percent stake in CAPS Holdings. The company includes several entities, such as St Anne’s Hospital, CAPS Manufacturing, and QV Pharmacies.
The ownership of CAPS has been contentious since 2015, when the Government entered a share purchase agreement with Mr. Mutanda, who claims the Government later withdrew from the deal, nullifying any subsequent actions.
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Recently, Industry and Commerce Secretary Dr. Utete Wushe communicated with Mr. Mutanda regarding the acquisition of his shares, stating that the matter would be handled by the Mutapa Fund, which is known for its expertise in managing complex transactions.
Mr. Mutanda has confirmed receiving this correspondence and is awaiting further discussions with the Mutapa Fund once the official transfer protocols are finalized. He emphasized that formal engagements would commence only after this process is completed.
The Mutapa Investment Fund, established by Parliament, serves as the Government’s strategic investment arm, funded by shares in select State-owned enterprises. The Fund manages a diverse portfolio across six sectors: mineral resources, energy and trading, information communication technology, transport and logistics, agriculture and industries, and financial services and real estate.
The fund aims to benefit ordinary Zimbabweans by increasing the viability and profitability of its entities, reducing their reliance on Government support, thereby reallocating resources to other priorities.
Furthermore, enhanced production is expected to create job opportunities and foster a more resilient economy.
The Mutapa Fund is also aligned with the National Development Strategy and Vision 2030 goals to improve Gross Domestic Product (GDP) and per capita income.
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