Zimbabwe to reforms Mutapa Investment Fund

The Zimbabwean government is planning comprehensive reforms to the Mutapa Investment Fund, aiming to position the country's sovereign wealth vehicle at the centre of efforts to restructure and commercialise State-owned enterprises (SOEs), improve service delivery, and drive industrialisation. The reforms are scheduled to roll out under the National Development Strategy 2 (NDS 2), which President Mnangagwa recently launched and which comes into effect at the start of next year.

Under the mid-term development plan, the government intends to consolidate ownership and oversight of commercial State entities by centralising them under the Mutapa Investment Fund. This approach seeks to separate ownership from line ministry control, reduce fragmentation, and introduce a professional, investment-driven framework for managing public assets. Authorities argue that this model is essential for turning around loss-making enterprises and transforming them into engines of value addition.

According to NDS 2, companies under the Mutapa Investment Fund offer opportunities to anchor structural transformation in key productive sectors, including agro-processing, mining, fertiliser production, water treatment chemicals, veterinary chemicals, and timber. Turning around these entities is expected to support downstream industries, improve export competitiveness, and reduce imports.

To strengthen accountability, the government will introduce a comprehensive performance management framework for SOEs, incorporating clear incentives and penalties linked to operational efficiency, financial sustainability, and service delivery. High-performing enterprises will be rewarded, while underperforming ones may face sanctions or management changes.

The reform package also includes legislative and regulatory reviews to reinforce oversight, including revisions to the Public Entities Corporate Governance Act and the Public Procurement and Disposal of Public Assets Act. NDS 2 further outlines specific actions for the Mutapa Investment Fund, including providing financial and technical support for entity turnaround plans, pursuing partnerships and joint ventures with private investors, disposing of or acquiring equity as needed to unlock value, and listing high-performing entities on the stock exchange to deepen capital markets.

The Mutapa Investment Fund was established to consolidate government shareholdings in commercial State entities previously scattered across ministries, where ministries acted as both policy makers and owners—a dual role that often led to political interference, weak oversight, and underperformance. As a sovereign wealth and investment fund, Mutapa is mandated to safeguard and enhance the value of national assets, support industrial development, and generate long-term financial returns for the state. Its portfolio spans mining, energy, transport, agriculture, manufacturing, and financial services, making it a central instrument in Zimbabwe's economic transformation agenda.

The government's planned reforms signal a shift toward professionalised, commercially focused management of public assets, with the aim of improving service delivery, unlocking economic value, and supporting Zimbabwe's industrialisation goals.