TOP-performing State-owned enterprises (SOEs) under the Mutapa Investment Fund will be listed on the stock exchange during the lifespan of the National Development Strategy 2 (NDS 2), in a move designed to unlock value, improve transparency and deepen the country’s capital markets.
This forms part of broad reforms aimed at transforming SOEs into profitable, commercially viable institutions that contribute meaningfully to national development while attracting both domestic and foreign investment.
According to the recently launched NDS 2 policy framework, Government emphasises that the Mutapa Investment Fund will continue driving reforms through capitalisation, restructuring and value-enhancing initiatives across its portfolio.
“During NDS 2, to improve State-owned enterprises performance, Mutapa Investment Fund will provide financial and technical support towards the implementation of turnaround strategic plans of the entities to achieve commercial viability and optimal performance, ensure improved operational and financial performance, service delivery and citizenry satisfaction, in line with performance targets, pursue partnerships and joint ventures with investors as possible financing mechanisms,” reads part of the document.
As part of its investment strategy, the Fund will utilise a mix of instruments to strengthen and reposition its entities.
“Dispose some of or acquire equity, as the case demands, as well as divest as part of strategies to deal with its entities to unlock value,” the NDS 2 document notes.
Critically, the policy framework emphasises that Government intends to open up some of the Fund’s performing assets to public investment through capital market participation.
“List some of the performing entities on the stock exchange, in line with the investment strategy, also to deepen and enhance performance of the capital markets,” it said.
Economic analysts have always argued that listing SOEs brings several benefits including improved corporate governance, enhanced accountability, efficient capital mobilisation and wider citizen participation in national assets.
It also helps expand the liquidity, depth and sophistication of Zimbabwe’s financial markets.-herald
