Mutapa eyes US$950m mining funding

LIVINGSTONE MARUFU

Zimbabwe’s sovereign wealth vehicle, the Mutapa Investment Fund (MIF), is mobilising US$950m to scale up mining operations, signalling an aggressive push to unlock value across the country’s mineral-rich assets, it has been learnt.

The planned capital raise comes as the Fund deepens its footprint across strategic sectors, including energy, logistics, agriculture and industrial production, in line with the government’s economic transformation blueprint under the National Development Strategy 2 (NDS2) and Vision 2030.

At the core of this strategy is mining, a sector MIF is positioning as a primary engine for value creation and foreign currency generation.

The planned US$950m capital raise is expected to unlock expansion across key mineral assets and enhance production efficiencies.

Apparently, the Fund has already channelled more than US$450m into energy rehabilitation, targeting improved power generation and supply stability. However, additional funding is still being pursued both locally and internationally to achieve long-term energy security.

MIF is also moving to reduce Zimbabwe’s reliance on fertiliser imports, committing US$153m towards reviving the fertiliser value chain ahead of the 2025/2026 agricultural season. Investments include US$5.3m into Dorowa Minerals, US$13.3m into Sable Chemicals, and US$10m into ZFC, with a targeted output of 300,000 tonnes of compound fertiliser.

Chief executive officer Dr John Mangudya said MIF would accelerate its capital mobilisation strategy while reinforcing operational discipline across its portfolio.

“In 2026, we expect to intensify our efforts to raise long-term funding for mining expansion, energy rehabilitation, logistics rehabilitation, and industrial sector revival that are in sync with NDS2 and Vision 2030. Equally, we will place greater emphasis on operational discipline, environmental sustainability, and risk management across the Fund’s portfolio companies,” said Dr Mangudya.

He added that the Fund’s priorities for 2026 include scaling up mining investments, upgrading energy infrastructure, modernising logistics systems, and revitalising industrial capacity to strengthen economic resilience and competitiveness.

MIF is leveraging its balance sheet to crowd in both domestic and international capital, targeting key development clusters such as infrastructure, utilities, digitalisation, human capital development and governance reform.

The Fund’s 2025 performance underscores a shift towards stronger financial discipline and institutional strengthening. Total comprehensive income surged to US$1.4bn, largely driven by fair value gains, particularly within the mining portfolio amid firm global commodity prices. Property assets also contributed to valuation gains.

Total assets rose to US$16.5bn, up from US$14.9bn in 2024, anchored by US$16.2bn in subsidiary investments, alongside growth in the loan book and marketable securities. Funds and reserves climbed to US$15.2bn, reflecting a solid capital base to support future investments.

Notably, the Fund maintained a conservative gearing ratio of 8%, signalling a cautious approach to borrowing even as it scales strategic investments.

Operationally, MIF continues to strengthen internal controls, risk management systems and financial reporting processes across its portfolio, which spans mining, energy, infrastructure, telecommunications, logistics, agriculture, industrials, financial services and real estate.

However, a number of these assets still carry legacy challenges, including debt overhangs, inefficiencies and governance weaknesses — issues that require sustained restructuring and long-term capital.

During the year under review, management focused on stabilising operations, strengthening governance frameworks, facilitating recapitalisation initiatives, and enhancing performance monitoring across portfolio companies.

A key structural shift has been the reorganisation of the Fund’s mining assets into commodity-specific verticals, including gold, platinum group metals (PGMs), base metals, energy, agro-minerals, frontier resources and technology metals. This transition from a conglomerate model is expected to improve transparency, operational efficiency and investor appeal.

The restructuring aligns with global best practice and is designed to position Zimbabwe’s mineral assets for more effective capital mobilisation and sustainable long-term returns.

Governance reforms have also been intensified at both Fund and portfolio level, seen as critical to unlocking capital and building investor confidence.

These reforms are, however, unfolding against a backdrop of technical insolvency in some entities, driven by legacy debt burdens, inefficient operating models and historical governance gaps.

Despite these constraints, MIF’s long-term objective is to achieve full IFRS-compliant reporting and a solvent, resilient consolidated balance sheet by 2030, positioning the Fund as a credible partner for global capital.