HARARE — Zimbabwe’s sovereign wealth fund, Mutapa Investment Fund (MIF), has issued a call for international investments in the state-owned entities (SOEs) under its management, including Air Zimbabwe (UM, Harare International).
Simba Chinyemba, MIF’s Chief Investment Officer, extended this appeal at the Zimbabwe Capital Markets and Investment Promotion Conference held in London on June 12 and 13. Although Air Zimbabwe was not explicitly named, Chinyemba emphasized the fund’s openness to international offers and investments across its portfolio of SOEs.
In an interview with The Herald, Chinyemba highlighted Zimbabwe’s willingness to engage in outright joint ventures or the sale of some assets, provided these align with national interests. “I can’t specify which assets because it depends on our strategy. However, as we implement turnaround strategies for many of these state-owned enterprises, we are open to discussions with various investors about the way forward,” he stated. Chinyemba stressed that “MIF is open for business. We welcome investors to come to Zimbabwe. The opportunities are immense, and the perceived risk is much higher than the real risk in Zimbabwe.”
Chinyemba further explained that the MIF is eager to form partnerships and would offer debt financing guarantees to private entities interested in investing in its companies. He noted the fund’s readiness to entertain offers for some of their holdings, with a primary focus on revitalizing underperforming assets for the country’s benefit.
The MIF manages a diverse portfolio of at least 22 companies across sectors such as energy, transport, mining, banking, telecommunications, and agriculture. Among these, Air Zimbabwe stands out due to its significant financial and operational challenges.
Technically insolvent, Air Zimbabwe faces severe financial difficulties. The acting auditor-general raised concerns over USD 407.8 million in losses for the financial year ending December 31, 2022 (2019 for Air Zimbabwe). The state-owned airline’s total liabilities exceeded its assets by USD 380.2 million, with continued losses in 2019 amounting to USD 15.3 million.
Currently, Air Zimbabwe operates a limited fleet. According to ADS-B data, it has one B737-200, Z-WPA (msn 23677), servicing routes between Harare International and Dar es Salaam, as well as between Harare and Victoria Falls. Its B767-200ER, Z-WPF (msn 24867), recently flew rotations between Harare, Upington (South Africa), and Goma (DRC) under a charter by JetEx Aerospace for the South African National Defence Force (SANDF), supporting the Southern African Development Community Mission in the Democratic Republic of Congo (SAMIDRC). Additionally, the airline’s E145, Z-WPQ (msn 145373), has been stored in Harare since September 2023, while A320-200 Z-WPN (msn 1973) remains grounded at Johannesburg O.R. Tambo amid a USD 39 million ownership dispute with Isle of Man-based SPV SouthJet. Sister ship Z-WPM (msn 630), owned by China Sonangol International, has been stranded in Johannesburg since January 2014.
In March, Air Zimbabwe issued a Request for Proposals (RFP) to sell four derelict aircraft, including two B737-200s and two additional unspecified planes, as part of its restructuring efforts.