Mutapa fund seeks reboot capital in India
STATE-owned Mutapa Investment Fund (MIF) has taken its revitalisation quest to India where several of its units are seeking to unlock investment purses running into billions of US dollars, which could potentially change the face of the national sovereign wealth fund.
MIF chief executive officer, Dr John Mangudya, who is here as part of Vice-President Dr Constantino Chiwenga’s delegation to the Africa Conclave on India-Africa Partnership, said the fund’s work has been given a lift by high-level political will from Government and expressed confidence that projects could soon take off.
Formed in terms of the Sovereign Wealth Fund Act, MIF boasts of an impressive multi-sectoral portfolio that includes Air Zimbabwe, TelOne, Fidelity Gold Refinery, NetOne, the National Railways of Zimbabwe, National Oil Company of Zimbabwe, the Industrial Development Corporation of Zimbabwe (IDCZ) and the national power utility, HCCL Holdings.
However, most of these companies are under-performing and contributing significantly less to the gross domestic product (GDP) than they used to at their peak. Although the national development strategy, with which Zimbabwe is pacing up towards an empowered upper-middle income economy, is underpinned by private sector-led growth, the Government identified these former state entities as key to national economic development.
Their full capitalisation and capacitation is also informed by the need to maximise value for the populace.
“Coming here with the Honourable Vice-President, shows and signifies political will that the Government of Zimbabwe is placing on the transformation of the State-owned enterprises to ensure that they become viable entities,” said Dr Mangudya.
“. . . it is a game changer for Zimbabwe and we are quite happy with the political support that we are obtaining from the leadership in Zimbabwe,” he said.
While engagements with funders have largely encompassed the whole MIF portfolio, authorities have zeroed in on four specific projects whose financing is almost at finalisation stage.
A US$100 million Memorandum of Understanding signed between the National Railways of Zimbabwe (NRZ) and RITES last year for the supply of nine locomotives, 115 wagons and infrastructure rehabilitation topped discussions and is now awaiting financial closure.
National Railways of Zimbabwe (NRZ)
The Zesa and Jindal MoU for the refurbishment of Hwange Units 1 to 6, which could see up to 800MW added to the national grid, was also discussed.
Among other issues discussed according to Dr Mangudya is, “the MoU between IDCZ and Ashok Leyland, which was signed in 2022, would need to be refreshed to take account of the current circumstances,” said Dr Mangudya.
Also the Industrial Development Corporation (IDC) and Shapoorji Pallongi project was attended to which is about the production of compound fertilisers from the phosphatic claims at Shawa claims by IDCZ under an Engineering Procurement and Construction (EPC) model.
Dr Mangudya said the contractor that has been identified and approved by IDZ to carry out this project is Shapoorji Pallongi.
“An MoU to this effect was signed on 6 January 2023. The contractor is expected to provide financing under this project and have approached Afreximbank for financial assistance,” said Dr Mangudya.-newsda
