Zesa Holdings has consolidated three of its subsidiaries under the ownership of the Mutapa Investment Fund, the national sovereign wealth fund, leaving only the national grid and sales utility Zimbabwe Electricity Distribution and Transmission Company under direct State control.
Through Statutory Instrument 51 gazetted yesterday, President Mnangagwa included the State shareholding in seven companies in the list of assets of the Mutapa Investment Fund. This move encompassed the shareholdings in Zesa Holdings and its subsidiary Zesa Enterprises, a manufacturer, as well as five companies previously owned by the Reserve Bank of Zimbabwe.
These entities include Aurex, a significant jewellery maker; Export Credit Guarantee Corporation of Zimbabwe; Fidelity Gold Refinery; and HomeLink Private Limited and HomeLink Finance.
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In September last year, two Zesa subsidiaries, the Zimbabwe Power Company, which operates Kariba South and Hwange Thermal Power stations, and PowerTel, which manages the fibre optic network linked to the national grid, were transferred to Mutapa.
The Mutapa Investment Fund, previously known as the Sovereign Wealth Fund established in 2014, underwent a major upgrade and renaming last September. This enhancement involved the transfer of Government shareholdings in various State-owned entities and former parastatals to the fund, along with other Government investments.
The objective of utilizing Mutapa to own these investments is to ensure their profitability and efficient management.
Sovereign wealth funds are commonly used in several countries to accumulate a portfolio of investments for the benefit of the populace. They are also employed to safeguard against sudden temporary surges of wealth, such as those resulting from natural resource discoveries.