Harare – The newly operationalized Zimbabwe’s sovereign wealth fund, Mutapa Investment Fund (MIF), holds a portfolio of state-owned enterprises with a fair value of USD $15 billion, according to its inaugural audited financial statements released yesterday.

The fund, which began active operations on May 1, 2024, reported a surplus of USD $3.6 million and a total comprehensive income of USD $8.0 million for the period ending December 31, 2024. The gross asset value of the 30 companies placed under its management is USD $16 billion.

In a statement, MIF Chief Executive Officer Dr John Mangudya framed the first year as one of “disciplined execution and strategic repositioning.” He noted that improved corporate governance in some portfolio companies led to dividend declarations totaling USD $5.8 million.

“We have made meaningful progress on all fronts during the maiden year,” Dr Mangudya stated, highlighting efforts to enhance governance, risk management, and operational efficiency across the diverse portfolio, which spans energy, mining, agriculture, and telecommunications.

“Our investment strategy continues to prioritise resilience, diversification and sustainable value creation. Inspired and empowered by the country’s vision of becoming a prosperous upper middle income economy by 2030, we strengthened and continue to enhance governance frameworks acrosS our portfolio companies, enhanced risk management practices , and deepened our focus on operational efficiency during 2025. These efforts are already yielding measurable improvements inperfomance, transparency and accountability,” said Dr Mangudya.

The fund’s creation in September 2023 consolidated the government’s shareholding in three dozen state-owned enterprises (SOEs6) under a single, professionally managed entity. This move is a central plank of the government’s SOE reform agenda, aimed at improving performance and reducing fiscal burdens.

President Emmerson Mnangagwa, in a foreword to the report, argued that fragmented ownership across ministries had previously created “inefficiencies, delayed reforms, and weakened accountability.” He cited models like Singapore’s Temasek as inspiration for the centralized, commercial approach.

Board Chairperson Chipo Mtasa emphasized the stewardship role, stating the Board has upheld “the highest standards of corporate governance” to position the fund as a “credible and trusted custodian of Zimbabwe’s long-term interests.”

Said Mtasa:

“We are committed to disciplined capital allocation, strategic patience, and forward-looking investment choices that balance opportunity with resilience. In doing so, the Fund is being positioned as a lasting cornerstone of national development and intergenerational wealth creation.”

The latest released report details a mixed performance across the fund’s clusters. The energy sector faced severe challenges, with power generation at Kariba South dropping 44% due to low water levels and output from Hwange’s older units falling 47%. However, new units at Hwange saw a 95% increase in generation.

The mineral resources cluster, including Kuvimba Mining House, benefited from high gold prices but contended with a severe downturn in lithium markets. The agriculture cluster showed resilience in beef production but faced structural challenges in the cotton and fertilizer industries.

Looking ahead, leadership identified strengthening corporate governance, improving financial performance, and deepening stakeholder engagement as immediate priorities. Mangudya said the fund remains focused on “investing with purpose, managing with integrity, and delivering with impact” for long-term national benefit.

The audit covers the 15-month period from the fund’s legal establishment in September 2023 through the end of 2024.