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Mutapa portfolio grows to 66 companies

by Staff reporter
16 Jun 2024 at 04:13hrs | Views
The Mutapa Investment Fund (Mutapa) manages a diverse portfolio of 66 state-owned enterprises (SOEs), their subsidiaries, and state-invested enterprises (SIEs). This portfolio includes entities in various financial positions, from profitable to loss-making or breaking even. 
Mutapa aims to attract international investment to fund critical capital projects in Zimbabwe, focusing on sectors like natural resources, energy, infrastructure, industrials, financial services, and real estate.
Ernest Denhere, Mutapa's deputy chief investment officer, outlined the fund's strategy during a CEO Africa Roundtable, emphasizing the importance of infrastructure, mining, and energy sectors in revitalizing SOEs to support Zimbabwe's Vision 2030 aspirations for economic growth. Key initiatives include addressing governance issues, enhancing board member skills, promoting autonomy in decision-making, and managing legacy debts.

The fund's efforts align with the Office of the President and Cabinet's assessment, highlighting a need for US$30 billion to recapitalize state entities. Challenges such as governance lapses and political interference have hindered SOEs' performance, prompting calls for qualified leadership and reduced governmental influence in board decisions.

Moving forward, Mutapa seeks to optimize SOE performance through strategic investments, regulatory improvements, and private sector partnerships, aiming to leverage commercial expertise to drive economic growth and reduce dependency on government support.

Source - the standard