PRESIDENT Mnangagwa has appointed the board of the Mutapa Investment Fund, fully activating and operationalising the national sovereign wealth fund, as Government moves to ensure it gets a return on investment in its companies.
Dr Chipo Mtasa is the chairperson, with Mr Lesley Ndlovu the vice chairperson.
Other members are Ms Thembelihle Khumalo, Mr Farai Mtamangira, Mr Bart Mswaka, Dr Charity Jinya, and Mr Prassad Bhamre.
The Mutapa Investment Fund, formerly the Sovereign Wealth Fund, was renamed through the publication of Mutapa Investment Fund: Presidential Powers (Temporary Measures) (Investment Laws Amendment) Regulations, 2023. The Sovereign Wealth Fund Act, which established the Sovereign Wealth Fund of Zimbabwe, was promulgated in 2015.
This year has seen a wide swathe of 22 State-owned enterprises, some former parastatals, moved from supervision by line ministries to Mutapa Investment Fund, building it up and allowing Government to seek efficient ways of capitalising the Fund.
In a statement yesterday, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, announced the board.
He said following consultations with various stakeholders, President Mnangagwa has now taken a substantive and deliberate decision to operationalise the Fund as well as to capitalise it appropriately.
As part of the implementation of that decision, President Mnangagwa, through Statutory Instrument 56 of 2023, made certain important amendments to the Sovereign Wealth Fund of Zimbabwe Act, including the transfer of the Government’s various shareholdings in 22 entities to the Fund.
The Mutapa Investment Fund is owned by the Republic of Zimbabwe.
Said Prof Ncube: “Traditionally, State-owned enterprises and local authorities used to contribute 40 percent to the country’s GDP. Over the years, not only did the positive contribution by State-owned enterprises cease, but they have generally become a drain on the fiscus, for many well documented reasons.
“His Excellency, the President has observed that the performance of State-owned enterprises 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.”
Being a Sovereign Wealth Fund, the fund’s objectives 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 returns on its investments.
Prof Ncube said 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, hence the appointment of the Mutapa Investment Fund board.
“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,” Prof Ncube said. – Herald