Mutapa, RBZ push for economic transformation

The Mutapa Investment Fund and the Reserve Bank of Zimbabwe (RBZ) have pledged to play pivotal roles in driving economic transformation and ensuring financial stability as the nation accelerates efforts to achieve its Vision 2030 goal of becoming an upper-middle-income economy.

Addressing delegates at the Masvingo Investment Conference on Friday, Mutapa Fund Chief Executive Dr John Mangudya said the sovereign wealth fund was actively mobilising resources and investments to support sustainable national development, with a focus on key economic sectors such as mining, infrastructure and agriculture.

"As Mutapa, our mandate is to mobilise and manage resources that will catalyse economic transformation," Dr Mangudya said. "We are working to support national priorities by strengthening State-owned enterprises and attracting investment into areas that generate the most impact."

He underscored the importance of transparency, integrity and productivity as foundational principles of Zimbabwe's development agenda, noting that the country must position itself as a generator of wealth.

"Zimbabwe must be a producer of wealth, not poverty. We want to be transparent in whatever we do and ensure this economy has the capacity to finance its own growth," he said. "We are playing our part by ensuring that investments are targeted where they are most impactful."

Quoting biblical verses, Dr Mangudya also called for diligence and self-reliance, urging a change in national mindset to support economic transformation.

The Mutapa Fund, which oversees more than 30 State-owned enterprises, is expected to play a crucial role in unlocking value from public assets and enhancing the Government's investment portfolio.

Representing RBZ Governor Dr John Mushayavanhu, Deputy Director for Economic Research Mr William Kavila outlined how the central bank's ongoing monetary policy reforms were anchoring economic stability and laying a foundation for long-term investment.

"The Reserve Bank is pursuing a policy mix aimed at consolidating price and exchange rate stability, strengthening data integrity and ensuring the resilience of the financial system," said Mr Kavila.

He noted that inflation is projected to remain below 3.3 percent in 2025, while economic growth is expected to reach 6 percent, supported by a stable currency, growing foreign currency receipts and prudent monetary management.

"Since the launch of the Zimbabwe Gold (ZiG) currency in April 2024, we have witnessed notable stability. Foreign exchange market premiums have dropped to below 20 percent and money supply growth is under control," Mr Kavila said. "Inflation fell from 0.9 percent in May to 0.3 percent in June."

He further revealed that Zimbabwe's foreign reserves increased from US$276 million in April to US$731 million by the end of June 2025, providing a solid buffer to support the local currency and essential imports.

According to Mr Kavila, the RBZ's strategy—centred on a market-determined exchange rate, disciplined money supply growth and a fully backed currency—has helped restore investor confidence and improve access to foreign currency for legitimate business transactions.

He stressed that while rebuilding confidence takes time, the economic fundamentals were now pointing in the right direction.

"Confidence is not built overnight, especially after years of economic instability," he said. "But we are laying the right foundation. As Zimbabweans, we must take the lead in investing and building our own economy."

He encouraged businesses to tap into the RBZ's Targeted Financing Facility, which supports manufacturing, agriculture and SMEs.

The Masvingo Investment Conference convened key stakeholders from government, finance, private sector and development partners to explore investment opportunities in the province and align efforts with the national economic strategy.

Both the RBZ and the Mutapa Investment Fund emphasised the importance of coordinated efforts, policy consistency and national ownership in achieving Vision 2030.

"Economic transformation is not the job of government alone," said Dr Mangudya. "It is a collective responsibility. Zimbabwe's future depends on how productive and committed we are today."