The Mutapa Investment Fund (MIF), a state-owned entity, is seeking significant investments in India as part of its efforts to revitalize its various sectors, with potential funding in the billions of US dollars that could transform Zimbabwe’s sovereign wealth fund.
Dr. John Mangudya, MIF’s CEO, who is part of Vice President Dr. Constantino Chiwenga’s delegation at the Africa Conclave on India-Africa Partnership, emphasized that strong political support from the Zimbabwean government is driving these initiatives, and he is optimistic that the projects will soon progress.
Established under the Sovereign Wealth Fund Act, MIF has a diverse portfolio that includes major state-owned enterprises like Air Zimbabwe, TelOne, Fidelity Gold Refinery,
NetOne, the National Railways of Zimbabwe (NRZ), the National Oil Company of Zimbabwe, the Industrial Development Corporation of Zimbabwe (IDCZ), and the national power utility, HCCL Holdings. However, many of these companies are currently underperforming and contributing less to the GDP than they did in the past.
Also read: OneMoney Revolutionizes DStv Payments: Seamless Entertainment at Your Fingertips
Although Zimbabwe’s development strategy focuses on private sector-led growth, the government has identified these state enterprises as crucial to national economic development. Their full capitalization is essential to maximize value for the public.
Dr. Mangudya highlighted that the presence of the Vice President in these discussions underscores the government’s commitment to transforming state-owned enterprises into viable entities. He expressed satisfaction with the political support from Zimbabwe’s leadership.
While discussions with potential investors have covered the entire MIF portfolio, four specific projects are nearing financial completion. These include a US$100 million Memorandum of Understanding (MoU) between NRZ and India’s RITES for the supply of locomotives, wagons, and infrastructure upgrades, which is awaiting financial closure. Additionally, discussions were held on the ZESA and Jindal MoU for refurbishing Hwange Units 1 to 6, which could add up to 800MW to the national grid.
Dr. Mangudya also mentioned the need to update the 2022 MoU between IDCZ and Ashok Leyland to reflect current conditions. Moreover, progress was made on the IDCZ and Shapoorji Pallonji project, focused on producing compound fertilizers from phosphatic claims at Shawa.
The contractor, Shapoorji Pallonji, has been approved and is seeking financing from Afreximbank to execute the project. An MoU was signed for this project in January 2023.
For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +44 7949 297606 or Email Us at editor@zimetro.co.zw
