Mutapa pumps US$100m into State firms in turnaround drive

The Mutapa Investment Fund injected US$100 million into its portfolio of State-owned enterprises (SOEs) in the nine months to September 30, 2025, as part of efforts to transform more than half of the entities under its management into profitable operations.

In February, Mutapa revealed that it oversees assets worth over US$20 billion drawn from more than 20 SOEs spread across mining, agriculture, energy and financial services. The Fund aims to leverage this vast portfolio to mobilise over US$1 billion in support of the newly launched National Development Strategy (NDS) 2.

According to NDS 2, the revitalisation of SOEs is a key pillar of structural economic transformation, particularly within agro-processing, mining, fertiliser production, water treatment chemicals, veterinary chemicals and the timber industry.

Presenting the 2026 National Budget Statement, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube said Mutapa was already delivering tangible results.

"The establishment of the Sovereign Wealth Fund, the Mutapa Investment Fund, is beginning to bear fruit, as significant strides have been achieved towards reviving and strengthening State-owned entities under its ambit during its first year of operation," he said.

Ncube noted that Mutapa had helped ease working-capital constraints by providing direct capital injections, forming partnerships and securing joint ventures.

"As of September 2025, over US$100 million had been deployed to the entities under the management of the Fund to boost operations and achieve commercial viability, transforming 53 percent of the SOEs into profitable entities," he said.

Mutapa is expected to anchor Zimbabwe's drive toward attaining upper-middle-income status by 2030, including establishing a National Stabilisation Fund to support long-term development priorities.

Ncube said the Fund was helping address persistent SOE weaknesses such as governance shortcomings, regulatory non-compliance, limited access to finance, weak financial management systems and shortages in critical skills.

To enhance transparency and attract foreign investment, Mutapa joined the African Sovereign Investors Forum in June 2025, becoming its 17th member, and is pursuing membership in additional global investment bodies.

Under NDS 2, Mutapa will continue providing financial and technical support to accelerate SOE turnaround plans, strengthen operational and financial performance, improve service delivery and enhance citizen satisfaction.

Ncube added that the Fund would also pursue partnerships and joint ventures, dispose of or acquire equity where necessary, and consider listing top-performing entities on the stock exchange to deepen capital markets and unlock value.