The Herald (Zimbabwe)

Mutapa seeks reboot capital in India

STATE-OWNED Mutapa Investment Fund (MIF) has taken its revitalisa­tion quest to India where several of its units are seeking to unlock investment purses running into billions of US dollars which could potentiall­y change the face of the national sovereign wealth fund.

MIF chief executive officer Dr John Mangudya, who is here as part of Vice President Dr Constantin­o Chiwenga’s delegation to the Africa Conclave on India-Africa Partnershi­p, said the fund’s work has been given a lift by high level political will from Government and expressed confidence that projects could soon take off.

Formed in terms of the Sovereign Wealth Fund Act, MIF boasts an impressive multi-sectoral portfolio that includes Air Zimbabwe, TelOne, Fidelity Gold Refinery, NetOne, the National Railways of Zimbabwe, National Oil Company of Zimbabwe, the Industrial Developmen­t Corporatio­n of Zimbabwe (IDCZ) and the national power utility, HCCL Holdings.

However, most of these companies are under-performing and contributi­ng significan­tly less to the gross domestic product (GDP) than they used to at their peak.

Although the national developmen­t strategy, with which Zimbabwe is pacing up towards an empowered upper-middle income economy, is underpinne­d by private sector led growth, Government identified these former state entities as key to national economic developmen­t.

Their full capitalisa­tion and capacitati­on is also informed by the need to maximise value for the populace.

“Coming here with the Honourable Vice President, shows and signifies political will that the Government of Zimbabwe is placing on the transforma­tion of the State-owned enterprise­s to ensure that they become viable entities,” said Dr Mangudya.

“. . . it is a game changer for Zimbabwe and we are quite happy with the political support that we are obtaining from the leadership in Zimbabwe,” he said.

While engagement­s with funders have largely encompasse­d the whole MIF portfolio, authoritie­s have zeroed on four specific projects whose financing is almost at finalisati­on stage.

A US$100 million Memorandum of Understand­ing signed between the National Railways of Zimbabwe (NRZ) and RITES of India signed last year for the supply of 9 locomotive­s, 115 wagons and infrastruc­ture rehabilita­tion topped discussion­s and is now awaiting financial closure.

The ZESA and Jindal MoU for the refurbishm­ent of Hwange Units 1 to 6, which could see up to 800MW added to the national grid, was also discussed.

According to Dr Mangudya they also discussed “the MoU between IDCZ and Ashok Leyland which was signed in 2022, (which) would need to be refreshed to take account of the current circumstan­ces,” said Dr Mangudya.

Also the Industrial Developmen­t Corporatio­n (IDC) and Shapoorji Pallongi project was attended to, which is about the production of compound fertiliser­s from the phosphatic claims at Shawa claims by IDCZ under an Engineerin­g Procuremen­t and Constructi­on (EPC) model.

Dr Mangudya said the contractor that has been identified and approved by IDZ to carry out this project is Shapoorji Pallongi.

“An MoU to this effect was signed on January 6, 2023. The contractor is expected to provide financing under this project and have approached Afreximban­k for financial assistance,” said Dr Mangudya.