Mutapa to revive struggling state enterprises

The Mutapa Investment Fund (MIF) has outlined strategies being implemented to resuscitate Zimbabwe's underperforming State Owned Enterprises (SOEs), with authorities expressing confidence that tangible improvements will emerge as the year progresses.

Formerly known as the Sovereign Wealth Fund, the MIF was established in 2015 to manage and invest State assets for long-term national benefit. The fund was renamed and fully operationalised in 2023 following the re-election of President Emmerson Mnangagwa.

In a progress report released on New Year's Eve, MIF chief investment officer Simbarashe Chinyemba said extensive work was underway to turn around several struggling parastatals, focusing on recapitalisation, infrastructure modernisation and value chain restructuring.

Among the flagship projects highlighted is the US$455 million Jindal Refurbish, Operate and Transfer (ROT) programme for Hwange Power Station Units 1 to 6, which Chinyemba said has advanced to the execution stage. The project is expected to play a critical role in stabilising Zimbabwe's baseload electricity generation capacity.

Chinyemba said the energy sector has also recorded key milestones, including the commissioning of major high-voltage transmission infrastructure such as the Alaska–Karoi 132kV line and the Kamativi–Dinson 88kV substations and transmission lines. These developments have strengthened bulk power transfer capacity and improved grid stability.

On the supply side, he said power generation has been diversified through the integration of industrial captive power and renewable energy sources, reducing pressure on the national grid.

Since the operationalisation of the MIF, several mature transactions have been concluded. These include recapitalisation initiatives for the National Railways of Zimbabwe (NRZ) in partnership with Afreximbank, as well as multiple upgrade projects by the National Oil Infrastructure Company (NOIC). The latter were funded through internally generated resources and include liquefied petroleum gas (LPG) expansion projects and the upgrade of the Feruka pipeline to a capacity of three billion litres per year.

Additional financing lines have also been extended to institutions such as the People's Own Savings Bank (POSB), the Agricultural Finance Corporation (AFC) and Petrotrade.

In the agro-industrial sector, Chinyemba said the Cold Storage Company (CSC) transaction aims to settle creditors and facilitate the company's exit from corporate rescue, while the Olivine–Surface Wilmar transaction is nearing key decision points. He added that high-value mining and infrastructure projects remain in the pipeline and are undergoing due diligence.

Chinyemba said the fund's deal pipeline reflects a strong emphasis on value chain restructuring, resource-backed financing and infrastructure modernisation, positioning the MIF to generate long-term value across multiple sectors of the economy.

"With several transactions moving from due diligence to drawdown, the Fund enters 2025 with a robust screened deal pipeline and a clear mandate—unlocking capital, modernising infrastructure and driving structural transformation across Zimbabwe's economy," he said.