Mthuli Ncube underfire over Mutapa secrecy

Opposition legislators in Zimbabwe have raised concerns over what they describe as the "clandestine" inclusion of the Mutapa Investment Fund (MIF) in the Finance Bill, questioning why the sovereign wealth fund has been exempted from paying income tax. The MPs argued that the MIF operates under a veil of secrecy, having been excluded from open public procurement procedures unlike other parastatals.

The Mutapa Investment Fund, Zimbabwe's sovereign wealth fund, drives strategic national investments aimed at economic growth and prosperity. Established in 2014 under the Sovereign Wealth Fund of Zimbabwe Act, it was renamed the MIF in September 2023 through Statutory Instrument 156 of 2023 and subsequently exempted from open public procurement procedures, as announced in General Notice 1546 of 2023.

During parliamentary proceedings, opposition legislator Casten Matewu questioned Finance Minister Mthuli Ncube on the rationale behind exempting the fund from income tax. "The Mutapa Investment Fund is already exempt from certain activities such as procurement. The way they do business is totally different from any other parastatal in the government. Now, can the Honourable minister convince us why the Mutapa Investment Fund should not be paying income tax?" he asked.

Similarly, legislator Corban Madzivanyika expressed concerns over the lack of transparency, suggesting that if the fund is exempted, it should at least be required to submit audited financial statements to Parliament quarterly or annually. "It may sound better than to exempt an institution that you know does not declare any dividend: no financial statements, nothing, even on its own website. To me, it defies logic," he said.

Edwin Mushoriwa also criticised the process, highlighting that no separate bill has been presented to Parliament regarding the fund since its renaming. He questioned why the Mutapa Investment Fund was being quietly inserted into the Finance Bill, asking, "What purpose does it serve in this Finance Bill?"

In response, Minister Ncube defended the move, saying that there was no impropriety in incorporating amendments into the Finance Bill. He explained that the top-level fund would not pay income tax, but its subsidiaries, which include more than 20 state-owned enterprises, continue to be taxed. "They are not exempt as individual entities. It is just about the top-level fund, not all the entities under it," he said.

The MIF, named after the ancient Mutapa Kingdom, holds shares in major state-owned enterprises, with Kuvimba Mining House—owning a dozen gold, lithium, nickel, and platinum mines—considered the crown jewel of the fund.