Finance Minister, Mthuli Ncube, Announces Appointment Of Mutapa Investment Fund Board

The Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, has announced the appointment of the Mutapa Investment Fund board. The Mutapa Investment Fund was previously known as the Sovereign Wealth Fund of Zimbabwe. According to a statement seen by Pindula News, the appointments were approved by President Emmerson Mnangagwa. Read the statement:

1. The Sovereign Wealth Fund Act [Chapter 22:201 (“the Act”), which established the Sovereign Wealth Fund of Zimbabwe was promulgated in 2015.

2. Since then, the operationalization of the Fund progressed slowly as the Government was exploring various efficient ways of capitalising the fund.

3. Following consultations with various stakeholders, His Excellency has now taken a substantive and deliberate decision to operationalise the Fund as well as to capitalise it appropriately.

4. As part of the implementation of that decision, His Excellency, through SI 56 of 2023, made certain important amendments to the Sovereign Wealth Fund of Zimbabwe Act which included the transfer of the Government of Zimbabwe’s various shareholdings in twenty-two entities to the Fund. The Fund was also renamed Mutapa Investment Fund through the publication of Mutapa Investment Fund: Presidential Powers (Temporary Measures) (Investment Laws Amendment) Regulations, 2023.

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5. The Mutapa Investment Fund is owned by the Republic of Zimbabwe as set out in section subsection 2 of section 3 of the Act.

6. Traditionally, SoEs and local authorities used to contribute 40% to the country’s GDP. Over the years, not only did the positive contribution by SOEs cease, but they have generally become a drain on the fiscus, for many well-documented reasons.

7. His Excellency, the President has observed that the performance of SOEs can be enhanced by proper performance management, reformulation of their corporate strategies in line with the National Vision 2030 and NDS1, institution of effective governance frameworks, a strengthening of the institutions, effective capital raising and disciplined capital allocation.

8. Being a sovereign wealth fund, the Fund’s objects are to make secure investments for the benefit and enjoyment of future generations of Zimbabweans, to support the development objectives of the Government, including its long-term economic and social development; to support fiscal or macroeconomic stabilisation, and to contribute to the revenues of Zimbabwe from the net retums on its investments

9. Government is determined not only that it earns a return on its investments starting with its investments in the companies listed in Statutory Instrument 156 of 2023, but also to foster sustainable employment creation, and ultimately that the companies operate profitably and contribute to the fiscus. This will be achieved in part through the implementation of a robust monitoring and evaluation institutional framework by the Fund as part of the performance management system in respect of companies in which it is invested.

10. To this end, I am pleased to announce that, as a further step towards the reforms and the operationalisation of the Fund, His Excellency, the President of the Republic of Zimbabwe, Cde. Dr. E. D. Mnangagwa, has approved the appointment of the following professionals to serve as Board members of the Mutapa Investment Fund:

i. Chipo Mtasa (Chairperson)

ii. Lesley Ndlovu (Vice Chairperson)

iii. Thembelihle Khumalo

iv. Farai Mtamangira

v. Bart Mswaka

vi.  Charity Jinya

vii. Prassad Bhamre.

11. Government is determined to establish a world-class sovereign wealth fund and it is envisaged that the board will make a strong contribution towards this objective.

12. May I take the opportunity to wish the new board members success in their new role and to register Government’s commitment to support the board in its work.

Thank you.

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