Omega Ukama 
MUTAPA Investment Fund (MIF) is expected to carry out “more enhanced disclosures of its operations by publishing financials of all its investee companies”, as part of measures to improve governance issues and transparency in Zimbabwe’s public finances, the International Monetary Fund (IMF) says.
This comes as the three-year-old behemoth’s Kuvimba Mining House has been broken into five “mineral-specific entities to create a more efficient ownership structure and remove discount trading or value encumbrances”, and at a time the US$14 billion sovereign wealth fund (SWF) has just published its debut accounts.
“Building on progress achieved during the mission on the ongoing SMP discussions, Fund staff will continue working closely with the authorities on defining the key parameters and modalities of the programme,” the IMF said in a recent statement encompassing its staff-monitored programme announcemen.
The IMF added that reporting and information-sharing were key in reducing fiscal risks associated with the country’s off-budget operations and improving general economic governance.
And the Bretton Woods institution’s statement not only marks a “sharp contrast to what it said last year” – when it flagged MIF’s potential to hide national liabilities and oversight concerns – but it has also stressed that the John Mangudya-led institution “must not borrow any money or funds without the express permission or approval of the Zimbabwean Finance minister and to avoid the accumulation of new or increasing sovereign debt”.
In its inaugural financials, the multi-billion-dollar fund has not only shown accounts and records with massive cashflows, and a nearly US$4 million surplus, but it has recently launched its “fix, invigorate, reinforce and extract” strategy to further strengthen its revival hopes and at a time authorities say 53 percent of the 30-plus entities under its ambit are now profitable.
As at December 31, 2024, MIF’s current assets, valued at US$7,4 million, surpassed current liabilities (US$4 817 776) by US$2,5 million to give a current ratio of approximately 1,53, indicating sufficiently liquid assets, while investment in associates reached US$80,3 million. Equity investments were also at US$42,7 million.
In an interview with The Financial Gazette last year, Mangudya said the fund was already negotiating funding with various foreign investors to partner in revamping some of its underperforming units.
“As MIF, we are a sub-sovereign entity… we are able to leverage from the surplus units to deficit units, and therefore we then work with the foreigners with the capacity to lend us,” he said.
“The first year of operation was one of disciplined execution, strategic repositioning, diagnostic assessments and valuation of portfolios to come up with informed strategic imperatives to revive… investee companies,” Mangudya said.
Owing to improvements in corporate governance, some of the fund’s portfolio companies in the trading and energy and financial services clusters declared dividends amounting to US$5,8 million during the period under review.
