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Mutapa to shake-up State firms
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Mutapa Fund Plots Major Shake-Up of State-Owned Enterprises to Enforce Governance and Profitability
Zimbabwe's sovereign wealth vehicle, the Mutapa Investment Fund, is preparing to roll out sweeping leadership changes across dozens of its portfolio state-owned enterprises (SOEs) as part of a bold strategy to enforce corporate governance, instil commercial discipline, and wean parastatals off Treasury bailouts.
The impending restructuring was confirmed by the fund's Chief Investment Officer, Simba Chinyemba, who said Mutapa is moving decisively to overhaul underperforming boards and senior management to professionalise operations, enforce accountability, and compel firms to start declaring dividends.
"Number one is to fix the corporate governance issues that we've seen, and the uncertainties that we've inherited," Chinyemba said in an interview this week. "Number two is to create a commercial mindset."
So far, at least five boards have been reconstituted, and six new chief executives appointed, with more changes expected imminently. Chinyemba emphasised that the reforms aim to transition state firms from their long-standing reliance on Treasury support to commercially sustainable, profit-generating entities that deliver value to both the fund and the nation.
"We've made it clear: if you're a commercial company, you've got to declare dividends or show a pathway to profitability," he said.
Chinyemba underlined that robust board oversight is now Mutapa's top priority, with new leadership teams given clear mandates and performance expectations.
"The board matters to us. What our boards and chairmen are doing is the most important thing we worry about at Mutapa right now," he said.
The governance overhaul comes on the back of a strong fundraising performance by the fund. In the first half of 2025, Mutapa raised US$350 million, a portion of which has already been channelled toward clearing legacy debts and injecting fresh capital into key enterprises to spur recovery and growth.
Established in 2022 by presidential decree, the Mutapa Investment Fund now controls 66 SOEs spread across six strategic clusters: mineral resources; energy and trade; ICT, transport and logistics; agriculture and agro-industries; financial services; and real estate.
Among its most high-profile holdings are the National Railways of Zimbabwe, Air Zimbabwe, TelOne, NetOne, People's Own Savings Bank, ZESA Holdings, Zimbabwe Power Company, Hwange Colliery, Fidelity Gold Refinery, National Oil Infrastructure Company of Zimbabwe, Petrotrade, Infrastructure Development Bank of Zimbabwe, Afreximbank's Zimbabwe representative office, ZB Financial Holdings, FBC Holdings, Agribank, Grain Marketing Board, Cold Storage Company, COTTCO, Zimbabwe Mining Development Corporation, Zimbabwe Consolidated Diamond Company, Mining Promotion Corporation, Silo Food Industries, Willowvale Motor Industries, Zimbabwe United Passenger Company, CMED (Private) Limited, Airports Company of Zimbabwe, Zimbabwe National Roads Administration, Allied Timbers, ZimParks, and the Zimbabwe Investment and Development Agency.
Many of these enterprises have long been plagued by chronic inefficiency, corruption, and undercapitalisation, with some running losses for years.
Under Mutapa's investment-led strategy, these companies will now be expected to operate as commercially viable entities that deliver returns and contribute meaningfully to Zimbabwe's broader economic development agenda.
Chinyemba said those unable to show a credible path to profitability would be required to justify their continued existence within the Mutapa portfolio.
"This is a very good example of a structure that is linked to project finance. If we fix the corporate governance, we create value. And we are already starting to see the change," he said.
Analysts say Mutapa's shake-up signals the beginning of what could be a transformative era in Zimbabwe's troubled public enterprise sector. By installing competent, performance-driven executives and holding boards accountable, the fund could become a powerful catalyst for industrial recovery and long-term economic growth.
However, they warn that sustained political backing, insulation from undue interference, and a relentless commitment to results will be crucial if the reforms are to succeed.
As Chinyemba put it: "Zimbabweans expect their sovereign wealth fund to take that money and invest it in other things for the future."
Mutapa's bold restructuring drive could mark the beginning of the end for decades of dysfunction in Zimbabwe's parastatal sector - but only if ambition is matched by execution.
Zimbabwe's sovereign wealth vehicle, the Mutapa Investment Fund, is preparing to roll out sweeping leadership changes across dozens of its portfolio state-owned enterprises (SOEs) as part of a bold strategy to enforce corporate governance, instil commercial discipline, and wean parastatals off Treasury bailouts.
The impending restructuring was confirmed by the fund's Chief Investment Officer, Simba Chinyemba, who said Mutapa is moving decisively to overhaul underperforming boards and senior management to professionalise operations, enforce accountability, and compel firms to start declaring dividends.
"Number one is to fix the corporate governance issues that we've seen, and the uncertainties that we've inherited," Chinyemba said in an interview this week. "Number two is to create a commercial mindset."
So far, at least five boards have been reconstituted, and six new chief executives appointed, with more changes expected imminently. Chinyemba emphasised that the reforms aim to transition state firms from their long-standing reliance on Treasury support to commercially sustainable, profit-generating entities that deliver value to both the fund and the nation.
"We've made it clear: if you're a commercial company, you've got to declare dividends or show a pathway to profitability," he said.
Chinyemba underlined that robust board oversight is now Mutapa's top priority, with new leadership teams given clear mandates and performance expectations.
"The board matters to us. What our boards and chairmen are doing is the most important thing we worry about at Mutapa right now," he said.
The governance overhaul comes on the back of a strong fundraising performance by the fund. In the first half of 2025, Mutapa raised US$350 million, a portion of which has already been channelled toward clearing legacy debts and injecting fresh capital into key enterprises to spur recovery and growth.
Among its most high-profile holdings are the National Railways of Zimbabwe, Air Zimbabwe, TelOne, NetOne, People's Own Savings Bank, ZESA Holdings, Zimbabwe Power Company, Hwange Colliery, Fidelity Gold Refinery, National Oil Infrastructure Company of Zimbabwe, Petrotrade, Infrastructure Development Bank of Zimbabwe, Afreximbank's Zimbabwe representative office, ZB Financial Holdings, FBC Holdings, Agribank, Grain Marketing Board, Cold Storage Company, COTTCO, Zimbabwe Mining Development Corporation, Zimbabwe Consolidated Diamond Company, Mining Promotion Corporation, Silo Food Industries, Willowvale Motor Industries, Zimbabwe United Passenger Company, CMED (Private) Limited, Airports Company of Zimbabwe, Zimbabwe National Roads Administration, Allied Timbers, ZimParks, and the Zimbabwe Investment and Development Agency.
Many of these enterprises have long been plagued by chronic inefficiency, corruption, and undercapitalisation, with some running losses for years.
Under Mutapa's investment-led strategy, these companies will now be expected to operate as commercially viable entities that deliver returns and contribute meaningfully to Zimbabwe's broader economic development agenda.
Chinyemba said those unable to show a credible path to profitability would be required to justify their continued existence within the Mutapa portfolio.
"This is a very good example of a structure that is linked to project finance. If we fix the corporate governance, we create value. And we are already starting to see the change," he said.
Analysts say Mutapa's shake-up signals the beginning of what could be a transformative era in Zimbabwe's troubled public enterprise sector. By installing competent, performance-driven executives and holding boards accountable, the fund could become a powerful catalyst for industrial recovery and long-term economic growth.
However, they warn that sustained political backing, insulation from undue interference, and a relentless commitment to results will be crucial if the reforms are to succeed.
As Chinyemba put it: "Zimbabweans expect their sovereign wealth fund to take that money and invest it in other things for the future."
Mutapa's bold restructuring drive could mark the beginning of the end for decades of dysfunction in Zimbabwe's parastatal sector - but only if ambition is matched by execution.
Source - Business Times
