Mutapa injects US$40m to revive struggling parastatals

The Mutapa Investment Fund (MIF) has released US$40 million to resuscitate struggling state-owned enterprises (SOEs) across Zimbabwe, in a renewed drive to restore efficiency and viability within key public institutions.

Formerly known as the Sovereign Wealth Fund of Zimbabwe, the MIF was established under the Sovereign Wealth Fund Act (Chapter 22:20) to manage and invest national resources for long-term economic stability. Its capital base is derived from balance-of-payments surpluses, foreign currency operations, privatisation proceeds, fiscal savings, and natural resource revenues.

Announcing the latest disbursement, Mutapa Fund CEO Dr. John Mangudya said the funding represents a critical step in efforts to restructure and strengthen Zimbabwe's public enterprises.

"This funding is designed to enhance the performance of parastatals and align them with the national economic agenda," said Dr. Mangudya. "Among the entities benefiting from this support are the Cold Storage Company (CSC), which recently emerged from corporate rescue, ZUPCO, Silo Foods, and the National Railways of Zimbabwe (NRZ), among others."

The Mutapa Fund has been central to the government's broader state enterprise reform agenda, steering distressed companies toward recovery and improved governance. Notably, the fund oversaw the revival of CSC, marking a significant turnaround for one of the country's oldest agricultural institutions.

The fund currently manages a diversified portfolio of strategic state assets grouped under several economic clusters - including mineral resources, energy and trading, ICT, transport and logistics, agriculture and industry, financial services, and real estate.

Through its targeted investment programmes, the Mutapa Investment Fund aims to reduce fiscal pressure on the state, improve service delivery, and position public enterprises as viable contributors to Zimbabwe's economic growth.

"We are confident that with this continued support, SOEs will not only regain financial stability but also contribute meaningfully to national development," Dr. Mangudya added.

The latest injection underscores the fund's expanding role as the government's key investment arm - anchoring economic stability, promoting sustainable growth, and reinforcing confidence in Zimbabwe's public enterprise reform programme.