HARARE – The Mutapa Investment Fund (MIF) is turning to Afreximbank for assistance in raising up to US$50 million to support the technical requirements needed to turn State assets into viable investments.
This move signals MIF’s strategy to revitalise parastatals and turn them into bankable ventures.
On Monday, Afreximbank announced the signing of a Joint Project Preparation Facility Framework Agreement with MIF. The agreement aims to mobilise funds for project preparation, including feasibility studies and technical assistance, crucial steps to ensure that projects are ready for investment. These preparatory funds will help make projects in sectors such as energy, transport, logistics, agro-processing, mining, and beneficiation attractive to investors.
Through this partnership, Afreximbank will assist MIF’s portfolio of investee companies in accessing preparatory funding to build a strong pipeline of projects. This would enable both Afreximbank, MIF, and other financial institutions to readily finance these projects. Afreximbank highlighted that the collaboration would unlock investments into key sectors, including energy, transport, logistics, and solid minerals development, among others.
The agreement also reflects Mutapa’s broader strategy for some of the State assets under its management. Mutapa has shown interest in bringing new investment into parastatals that, despite holding substantial assets, have suffered from years of mismanagement. As part of this strategy, the Fund has been exploring foreign investors to take stakes in these companies. One such initiative includes the planned development of a lithium project at Sandawana.
Earlier in October, MIF’s CEO, John Mangudya, revealed that the Fund had completed a comprehensive diagnostic assessment of its portfolio, which valued its assets at US$16 billion.
Notably, the government has also made significant policy changes to support Mutapa’s ambitions. Last year, a government gazette exempted Mutapa from the Public Procurement and Disposal of Public Assets Act, a law that typically requires public enterprises to go through the Procurement Regulatory Authority of Zimbabwe. This exemption allows Mutapa to make quicker investment decisions, including buying or selling shares in companies. Additionally, the government amended the law in November to allow Mutapa to use State assets as collateral for borrowing.
This increased flexibility and strategic partnership with Afreximbank positions Mutapa Investment Fund for the growth and revitalisation of key national assets.
Source: NewZWire
