News / National
Mnangagwa's Mutapa fund plots parastatals shake-up
11 Mar 2024 at 00:57hrs | Views
The MUTAPA Investment Fund (MIF), previously criticized as a conduit for elite enrichment, has declared its commitment to establishing robust governance frameworks aimed at reining in reluctant State Owned Enterprises (SOEs).
Originally named the Sovereign Wealth Fund of Zimbabwe, MIF operates under the Sovereign Wealth Fund Act (Chapter 22:20), overseeing approximately 20 parastatals. Its renaming occurred following the re-election of President Emmerson Mnangagwa, effected through Statutory Instrument 156 of 2023.
In a recent update, outgoing Reserve Bank of Zimbabwe (RBZ) governor and MIF CEO, John Mangudya, outlined plans for a significant overhaul of parastatals, emphasizing the importance of commercial viability and wealth generation for present and future generations.
Mangudya highlighted the imperative for SOEs like the National Oil Company (NOIC) to compete vigorously and increase profitability. He underscored the implementation of governance systems and checks to ensure timely compliance with recommended practices across parastatals.
"We have established committees such as the investment, governance, and HR committees within the holding company to ensure uniformity and adherence to policies emanating from MIF," he explained.
Additionally, strategies are being devised to revitalize struggling parastatals and leverage opportunities within their balance sheets, alongside exploring new avenues for growth to restore these entities to their former prominence.
During their prime in the first two decades after independence in 1980, Zimbabwean parastatals contributed significantly to the GDP, reaching about 40%. However, mismanagement of funds and weak corporate governance led to their decline over the years, with many operating at a loss and burdening the national treasury.
Originally named the Sovereign Wealth Fund of Zimbabwe, MIF operates under the Sovereign Wealth Fund Act (Chapter 22:20), overseeing approximately 20 parastatals. Its renaming occurred following the re-election of President Emmerson Mnangagwa, effected through Statutory Instrument 156 of 2023.
In a recent update, outgoing Reserve Bank of Zimbabwe (RBZ) governor and MIF CEO, John Mangudya, outlined plans for a significant overhaul of parastatals, emphasizing the importance of commercial viability and wealth generation for present and future generations.
"We have established committees such as the investment, governance, and HR committees within the holding company to ensure uniformity and adherence to policies emanating from MIF," he explained.
Additionally, strategies are being devised to revitalize struggling parastatals and leverage opportunities within their balance sheets, alongside exploring new avenues for growth to restore these entities to their former prominence.
During their prime in the first two decades after independence in 1980, Zimbabwean parastatals contributed significantly to the GDP, reaching about 40%. However, mismanagement of funds and weak corporate governance led to their decline over the years, with many operating at a loss and burdening the national treasury.
Source - newzimbabwe
