THE Mutapa Investment Fund (Mutapa) surplus after tax surged by 503% to US$21,67 million last year, driven by improved income streams and portfolio performance from its investee companies.
Mutapa had recorded a surplus after tax of US$3,58 million in the 15 months ended December 31, 2024.
The massive increase is attributed to the country’s sovereign wealth fund improving its governance structures at its investee companies allowing those state entities to improve their income levels.
Consequently, total income soared just over 406% to US$60,34 million during the review period.
Leading this growth were increases in dividend income of nearly 304% to US$23,32 million and Mutapa recording management fees of US$26,56 million compared to zero in the prior period.
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“The Fund’s financial performance for the year demonstrates not only the strength of our balance sheet but also the effectiveness of the restructuring efforts being undertaken across our investment portfolio,” Mutapa chief executive officer John Mangudya said in a statement attached to the Fund’s annual report ended December 31, 2025.
“At the entity level, the Fund achieved a surplus after tax of US$21,7 million for the year ended 31 December 2025, from the position of US$3,6 million in 2024.
“This solid performance was underpinned by dividend income of US$23,3 million and management and advisory fees totalling US$26,6 million from investee companies to the Fund.”
He said strong governance remained paramount to the Fund’s long‑term success.
“Particular emphasis was placed on: Clarifying roles and responsibilities between shareholder, board, and management; Strengthening risk identification,assessment, and mitigation processes; and Reinforcing ethical conduct, compliance, and accountability,” Mangudya said.
“These efforts are essential not only for protecting asset value, but also for positioning the Fund and its investee companies to attract long‑term capital and strategic partnerships in line with NDS2 [National Development Strategy 2].”
He said the Fund’s total comprehensive income grew substantially to US$1,4 billion, largely driven by significant fair value gains on Mutapa’s asset base.
“We have seen significant value growth in our mining portfolio as a result of the increased commodity prices. Another driver for the valuation gains was the value of land and buildings,” Mangudya said.
“The valuation of assets is central to our mandate as a custodian of national wealth, and this outcome reflects the maturation of the comprehensive valuation framework established by the Fund following its establishment in September 2023.”
Consequently, total assets closed the year at a value of US$16,5 billion from the US$14,9 billion position in 2024.
Mangudya said this was strengthened by Mutapa’s core investment in subsidiaries amounting to US$16,2 billion and supported by an expanded loan book and growing marketable securities portfolio.
“Funds and reserves increased to US$15,2 billion, demonstrating a strong capital position that provides a solid foundation for future investment activity,” he said.
“The Fund’s gearing ratio at 8% remained low as we continue to adopt prudent borrowing strategies to finance key national infrastructure and operational requirements.”
This has positioned the Fund to continue with its growth strategy.
“In 2026, we expect to intensify our efforts to raise long‑term funding for mining expansion, energy rehabilitation, logistics rehabilitation, and industrial sector revival that are in sync with the National Development Strategy 2 and Vision 2030,” Mangudya said.
“Equally, we will place greater emphasis on operational discipline, environmental sustainability, and risk management across the Fund’s portfolio companies.”
Mutapa board chair Chipo Mtasa said that looking ahead, the Fund will maintain its transformation momentum while positioning itself to attract global capital.
“Key priorities for 2026 include: Scaling up investments in mine expansion; Supporting critical upgrades in the energy sector; Modernising national logistics and infrastructure; Revitalising industrial production to enhance resilience and competitiveness,” she said.-newsda
