The Mutapa Investment Fund (MIF) is seeking more than US$10 billion to expand operations across its portfolio as it steps up efforts to turn State-Owned Enterprises (SOEs) into commercially sustainable businesses, Mining Zimbabwe reports.
By Ryan Chigoche
Within its mining portfolio, Mutapa controls Kuvimba Mining House, Hwange Colliery Company and Delford Mine, which together form the backbone of its extractive sector investments.
The capital-raising programme is focused on infrastructure refurbishment, capital expansion and recapitalisation.
In its annual report released last week, Mutapa said total funding needs exceed US$10 billion, with resources being sourced through various strategic avenues.
“Total funding requirements exceed US$10bn, with approximately US$1bn raised to date for portfolio companies. Funding sources include debt, equity, public-private partnerships (PPPs), and joint ventures with development finance institutions, banks, and private investors,” read the report.
The Fund said the strategy is designed to drive modernisation, strengthen operations and promote sustainable growth across all sectors.
During 2024, MIF’s investment team, working alongside its portfolio companies, put together a pipeline of significant transactions, particularly in energy, minerals and infrastructure.
The period was marked by projects with substantial scale and national economic impact.
A key project was the US$455 million Jindal Refurbish, Operate and Transfer initiative for Hwange Power Station Units 1 to 6, which has moved into execution. The project is expected to stabilise Zimbabwe’s baseload electricity supply.
Progress was also made in transmission, with the commissioning of the Alaska–Karoi 132kV line and the Kamativi/Dinson 88kV substations and transmission lines, improving bulk power transfer and overall grid stability.
On the generation side, the energy mix was diversified through the integration of industrial captive power and renewable energy sources.
Other matured transactions included the recapitalisation of the National Railways of Zimbabwe with Afreximbank support, upgrades to NOIC storage and pipeline facilities funded from internally generated resources, LPG infrastructure expansion, and an upgrade of the Feruka pipeline to a capacity of three billion litres per year.
Lines of credit were also extended to POSB, AFC and Petrotrade.
The mineral resources portfolio saw several high-value projects at various stages of development. Additional mining and infrastructure projects continue through due diligence.
The overall pipeline demonstrates a focus on value-chain restructuring, resource-backed financing and infrastructure modernisation, positioning the Fund to deliver long-term value across its holdings.
While Mutapa has made progress in stabilising its portfolio, it acknowledges ongoing challenges, including legacy debt, governance weaknesses and liquidity pressures at some companies.
The Fund said it is now prioritising execution, strengthening oversight, enforcing governance reforms, and driving value creation through targeted investments and strategic partnerships.
The Fund emphasised its commitment to contributing to Zimbabwe’s economic growth, fiscal stability and long-term development, with strong governance and accountability at the core of its operations.
Mutapa was established by an Act of Parliament in 2014 as the Sovereign Wealth Fund of Zimbabwe and was fully operationalised and renamed the Mutapa Investment Fund under Statutory Instrument 156 of 2023.
The restructuring transformed Mutapa into the government’s strategic investment arm through the transfer of 30 commercial SOEs from line ministries into its management.
The model was informed by research conducted by the State Enterprises Restructuring Agency, which aimed to improve SOE performance by cutting bureaucratic inefficiencies and strengthening governance through benchmarking against global sovereign wealth fund practices.
