The Government says some of the top-performing State-owned enterprises under the Mutapa Investment Fund will be listed on the stock exchange during the lifespan of the National Development Strategy 2.
This move is designed to unlock value, improve transparency and deepen the country’s capital markets.
The move also forms part of broad reforms aimed at transforming State-owned enterprises (SOEs) into profitable, commercially viable institutions that contribute meaningfully to national development, while attracting both domestic and foreign investment.
According to the recently launched NDS2 policy framework, the Government emphasises that the Mutapa Investment Fund will continue driving reforms through capitalisation, restructuring, and value-enhancing initiatives across its portfolio.
“During NDS2, to improve State-owned enterprises’ performance, the 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, and 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 of 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 NDS2 document notes.
Critically, the policy framework emphasises that the 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 states.
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.
A business strategist with ConsultWorld Enterprise, Mr Busani Malaba, commended the planned listings and the Fund’s approach to restructuring, saying the moves signal a maturing investment and governance landscape.
“The decision to list performing State enterprises and to back them with strong financial and technical support is a decisive step toward rebuilding commercially viable national champions,” he said.
“This demonstrates seriousness in creating transparent, well-run institutions, while giving the private sector a chance to participate in value creation. Such reforms deepen confidence, inject discipline and help align SOEs with global best practices.”
The planned listings are expected to complement ongoing efforts to modernise public enterprises, strengthen governance frameworks, and position SOEs as engines of growth under Vision 2030.
With the Mutapa Investment Fund holding a diversified portfolio across sectors, the move is expected to draw significant investor attention and strengthen Zimbabwe’s economic reform narrative.
The document further notes that during NDS2, State-owned enterprises will play a central role as key enablers of productive sectors and providers of essential public services.
“In particular, NDS2 interventions target investee companies under the umbrella of the Mutapa Investment Fund, which offer a unique opportunity for value addition and beneficiation.
“The Government undertook State-owned enterprises and parastatal ownership reforms through centralisation of commercial entities under the Mutapa Investment Fund.
“The turnaround of State-owned enterprises will be critical for structural transformation by anchoring value addition across such industries as agro-processing, mining, fertiliser, water treatment chemicals, veterinary chemicals, and timber.”
It added that the Government will reinforce oversight mechanisms to embed robust systems of incentives and penalties by developing a comprehensive performance management framework over State-owned enterprises.
“To ensure State-owned enterprises effectively deliver on their mandates, the Government will strengthen the legislative, regulatory, and institutional frameworks governing them.
“This will include the review of the Public Entities Corporate Governance Act (Chapter 10:31) and the Public Procurement and Disposal of Public Assets Act (Chapter 22:23).”
Furthermore, to bolster the Mutapa Investment Fund’s shareholding function in State-owned enterprises, the Sovereign Wealth Fund of Zimbabwe Act (Chapter 22:20) will be reviewed to enhance governance provisions for the Mutapa Investment Fund to ensure robust, transparent, and accountable oversight of State-owned enterprises, delineate the powers of Mutapa vis-a-vis the State-owned enterprises under its purview, and provide for disclosure of the Fund’s annual reports, in alignment with the Santiago Principles.
These principles require the publication of audited annual financial statements and reports on operations, investment activities, and performance to promote public accountability.
To promote accountability and high performance across State-owned enterprises, the Government will introduce a deterrent, performance-based penalty regime, including provisions for the dismissal of boards and management in cases of gross underperformance.
“These measures will ensure compliance, enforce accountability, and entrench a culture of performance excellence across the State-owned enterprises sector.”-herald
