Mutapa assets valued at US$16bn

A comprehensive valuation of companies under the Mutapa Investment Fund (MIF), carried out by prominent local and international accounting firms over the past five months, has placed the total value of its assets at US$16 billion, positioning it among Africa's four largest sovereign wealth funds.

This significant asset base raises expectations that the fund can be leveraged to stimulate Zimbabwe's economic development, with assets spanning key sectors such as mining, transport, logistics, financial services, and real estate.

MIF chief executive officer Dr. John Mangudya explained the details of the assessment in an interview.

"The Mutapa Investment Fund has conducted a comprehensive diagnostic review of all the portfolio companies it manages over the past five months. As a result, the fund created six clusters to streamline management and track the performance of its entities," said Dr. Mangudya.

The clusters include: mineral and mining resources, agriculture and industrials, information and communication technology (ICT), transport and logistics, financial services and real estate, as well as energy and trading.

"The valuation of assets, conducted by reputable accounting firms, has now been completed, and as of June 2024, the market value of assets under the fund's management is US$16 billion," Dr. Mangudya added.

To ensure transparency and effective management, the fund has established a robust governance structure and board committees to oversee operations and the valuation process.

Dr. Mangudya stressed the importance of transparency, noting that the assets under the fund represent a significant part of Zimbabwe's GDP. He said, "These assets must be transparently and accurately accounted for and managed, not only for the benefit of Zimbabwean citizens but also to attract potential investors."

The MIF also boasts skilled and competent staff to enhance the financial and operational performance of the companies it manages, which include prominent entities such as Kuvimba Mining House, National Railways of Zimbabwe, Air Zimbabwe, TelOne, and the Zimbabwe Power Company.

With its US$16 billion asset portfolio, MIF now ranks as the fourth-largest publicly owned asset manager in Africa, after Ethiopia's Ethiopian Investment Holdings (EIH), South Africa's Public Investment Corporation (PIC), and the Libyan Investment Authority (LIA). In comparison, Botswana's Pula Fund holds US$5.3 billion, while Angola's sovereign wealth fund manages US$2.98 billion in assets.

In his recent State of the Nation Address to Parliament, President Emmerson Mnangagwa highlighted the critical role the sovereign wealth fund would play in Zimbabwe's development, particularly in leveraging natural resources to drive economic growth.

"The mining sector continues to attract favorable investment, with growing demand for new energy minerals," said President Mnangagwa. "Assets under the sovereign wealth fund will bolster performance and revenue from the mining and other sectors, ensuring our natural resources benefit all Zimbabweans."

MIF's portfolio also includes key players in various sectors such as Cottco, Zupco, Defold Mine, the National Oil Company of Zimbabwe, and the Zimbabwe Electricity Supply Authority (ZESA), among others.

The Mutapa Investment Fund was established in 2023 as part of the government's efforts to restructure and better manage public investment assets. It was formed through the transformation of the Zimbabwe Sovereign Wealth Fund, which had been established in 2014 but had not fully realized its potential.

With the asset valuation now complete, MIF is poised to play a crucial role in Zimbabwe's economic future by maximizing the value of its vast portfolio.