Mutapa Investment Fund (MIF) has reported an operating surplus after tax of USD21.7 million for the year ended 31 December 2025, marking an improvement from USD3.6 million in the prior period, supported by stronger recurring income and expanding activity across its investment portfolio, Mining Zimbabwe can report.
By Ryan Chigoche
The surplus was underpinned by recurring income of USD60.3 million, which included USD23.3 million in dividends and USD26.6 million in management and advisory fees.
Total comprehensive income for the year rose to USD1.4 billion, driven mainly by valuation gains within the investment portfolio. The fund’s asset base stood at USD16.5 billion, of which USD16.2 billion is carried under fair value investments in subsidiaries.
Mining assets remain central to the portfolio, with state-linked holdings including Kuvimba Mining House, which is undergoing restructuring into commodity-focused subsidiaries as part of a broader reorganisation of the fund’s investment structure.
Grant Thornton issued a qualified audit opinion on the financial statements, citing non-compliance with IFRS 13 on fair value measurement and IAS 21 on foreign currency translation.
The auditor also raised an emphasis of matter relating to estimation uncertainty in valuation inputs and the treatment of mining royalties payable to the fund under the Sovereign Wealth Fund Act. Despite the fund’s exposure to mineral assets, no mining royalty income was recognised during the reporting period.
The valuation qualification relates to the methodologies applied across investment assets, the majority of which are linked to mining and resource-based subsidiaries.
Mutapa said 25 of its 31 portfolio companies have completed their 2024 audits, while six remain outstanding.
It added that IAS 21 issues arise from currency mismatches across portfolio entities operating in both US dollar and Zimbabwe Gold environments, affecting the translation of mining and other subsidiary results at group level.
The fund also confirmed that its borrowing position increased to USD124.2 million by the end of 2025, compared to a debt-free position in 2024. The facilities were drawn from CABS, the National Oil Infrastructure Company of Zimbabwe, Ecobank, and ZARNET, at interest rates ranging between 11% and 13%.
Mutapa said the borrowings were used to support investment activity and manage liquidity requirements across its portfolio.
Looking ahead, the fund has lined up a pipeline of transactions exceeding USD1 billion for 2026, with mining-linked financing forming a significant component.
The planned deals include a USD75 million syndicated mining facility, USD400 million in commodity-backed offtake financing, over USD500 million in energy projects, and a USD100 million rail infrastructure facility.
The fund said the pipeline forms part of its broader capital deployment strategy into mining, energy, and logistics-linked sectors.
