MUTAPA Investment Fund (MIF) chief executive officer (CEO) John Mangudya this week undertook to deliver ‘profits’ and ‘corporate governance’ to multiple boardrooms in firms under his stewardship, as he set out his game plan to staff.
Mangudya, former Reserve Bank of Zimbabwe governor, was appointed MIF CEO in December, after President Emmerson Mnangagwa renamed the Sovereign Wealth Fund to MIF.
Last month, Mangudya, former CBZ Bank CEO, embarked on the challenging endeavour of establishing a vast state empire from the ground, potentially instilling a culture of productivity and diligence across a conglomerate that include high-value firms collectively worth billions of United States dollars.
In his address to staff, Mangudya indicated he would push to drive most of them to profit under his plan to create value.
State firms’ CEOs had for decades been accustomed to going cap in hand to government, for handouts, after running vital companies down. Many of them are insolvent. Combined, their contribution to gross domestic product tumbled to about 12% in 2021, from 40% in the 1990s.
“The vision of MIF is to create a sustainable and profitable entity that serves the national interest above all,” Mangudya said.
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“The Fund’s core values of transparency, accountability, excellence, commitment and integrity guide all decision-making processes, with a focus on achieving sustainable performance and teamwork for the benefit of all Zimbabweans.
“We need to safeguard national assets and to sweat them for the greater good of the Zimbabwean economy.
“MIF aims to promote good corporate governance and performance within all its portfolio companies, ensuring their commercial viability for the benefit of all Zimbabweans.
“By promoting good corporate governance and reinvesting profits into viable and profitable entities, MIF aims to drive economic development and stability in Zimbabwe,” he added.
Mangudya said MIF “will prioritise understanding the needs of entities under its armpit, reinvesting profits for the continuous growth and development of the nation”.
For now, MIF has a collection of around 26 out of over 100 state firms.
These include Defold Mine, Zupco, Kuvimba, Silo Investments, National Oil Company of Zimbabwe, Cold Storage Commission, Petrotrade, POSB Bank, NetOne, National Railways of Zimbabwe, TelOne, Arda Seeds, Zimbabwe Power Company, Powertel, Allied Timbers, Telecel Zimbabwe, Air Zimbabwe, Industrial Development Corporation, Cottco, AFC Limited and Hwange Colliery.
Power utility Zesa Holdings, Homelink Private Limited, HomeLink Finance, Fidelity Gold Refinery, Export Credit Guarantee Insurance Corporation of Zimbabwe and Aurex are also under MIF.