Mutapa, RBZ vow to drive economic transformation

STAFF WRITER

The Mutapa Investment Fund and the Reserve Bank of Zimbabwe (RBZ) have reaffirmed their commitment to spearheading Zimbabwe’s economic transformation and financial stability as the country presses forward with its Vision 2030 goal of achieving upper-middle-income status.

Addressing delegates at the Masvingo Investment Conference on Friday, Mutapa Investment Fund CEO Dr. John Mangudya underscored the Fund’s strategic role in mobilising capital and steering investments across critical sectors of the economy.

“As Mutapa, our mandate is to mobilise and manage resources that will catalyse economic transformation,” Dr. Mangudya said. “We are working to support national priorities by strengthening State-owned enterprises and attracting investment into areas such as mining, infrastructure, and agriculture.”

He emphasised that transparency, integrity, and productivity were guiding principles in ensuring that the economy can fund its own growth. “Zimbabwe must be a producer of wealth, not poverty. We are playing our part by ensuring that investments are targeted where they are most impactful,” he said.

Dr. Mangudya also invoked scripture to reinforce a culture of hard work and self-reliance. “Proverbs 10:4 says, ‘Lazy hands make for poverty, but diligent hands bring wealth.’ And Ecclesiastes 9:10 says, ‘Whatever your hand finds to do, do it with all your might.’ These verses reflect the attitude we must adopt as we move toward Vision 2030.”

Managing over 30 State-owned enterprises, the Mutapa Fund is seen as a pivotal instrument in unlocking value from public assets and consolidating the government’s investment portfolio.

Also speaking at the event, RBZ Deputy Director of Economic Research William Kavila—standing in for Governor Dr. John Mushayavanhu—highlighted the central bank’s efforts to stabilise the economy through a disciplined monetary policy framework.

“The Reserve Bank is pursuing a policy mix aimed at consolidating price and exchange rate stability, strengthening data integrity and ensuring the resilience of the financial system,” Mr. Kavila said.

He projected monthly inflation would remain below 3.3% throughout 2025, with economic growth expected to reach 6%, bolstered by a stable currency, rising foreign currency receipts, and tight monetary controls.

“Since the launch of the Zimbabwe Gold (ZiG) currency in April 2024, we have witnessed notable stability,” he said. “Foreign exchange market premiums have fallen to below 20%, and money supply growth is under control. Inflation dropped from 0.9% in May to 0.3% in June.”

According to Mr. Kavila, foreign currency reserves surged from US$276 million in April to US$731 million by the end of June, enhancing the central bank’s capacity to support the local currency and fund essential imports.

He added: “The RBZ’s commitment to a market-determined exchange rate system, disciplined money supply management and a fully backed currency has contributed to improved investor confidence. We are also seeing improved access to foreign currency for bona fide payments.”

Kavila noted that the Bank’s broader strategy is focused on restoring confidence in the economy through sustainable and predictable policies. “Confidence is not built overnight, especially after years of economic instability,” he said. “But we are laying the right foundation. As Zimbabweans, we must take the lead in investing and building our own economy.”

He encouraged businesses, especially in Masvingo, to tap into the RBZ’s Targeted Financing Facility, which supports key sectors such as manufacturing, agriculture, and SMEs.

The Masvingo Investment Conference brought together government officials, financial sector leaders, private investors, and development agencies to explore investment opportunities in the province and align them with the country’s broader economic strategy.

Both the Mutapa Fund and RBZ called for greater policy coherence and collaboration to achieve the goals of Vision 2030, urging Zimbabweans to take ownership of the country’s future.

“Economic transformation is not the job of government alone,” Dr. Mangudya said. “It is a collective responsibility. Zimbabwe’s future depends on how productive and committed we are today.”