Mangudya talks profits as MIF begins operations

MUTAPA Investment Fund (MIF) chief executive officer (CEO), John Mangudya, pledged this week to deliver ‘profits’ and ‘corporate governance’ to multiple boardrooms of companies under his leadership, as he outlined his action plan to the staff.

Mangudya, a former governor of the Reserve Bank of Zimbabwe, was appointed director-general of the MIF in December, after President Emmerson Mnangagwa renamed the Sovereign Wealth Fund to MIF.

Last month, Mangudya, former chief executive of CBZ bank, embarked on the challenging task of establishing a vast state empire from scratch, potentially instilling a culture of productivity and diligence in a conglomerate that includes high-value companies collectively valued in the thousands. of millions of US dollars.

In his address to staff, Mangudya indicated that he would push for most of them to make profits under his plan to create value.

CEOs of state-owned companies had been accustomed for decades to turning to the government, hat in hand, for handouts after ruining vital companies. Many of them are insolvent. Collectively, their contribution to gross domestic product fell to around 12% in 2021, from 40% in the 1990s.

“MIF’s vision 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, focusing on achieving sustainable performance and teamwork for the benefit of all Zimbabweans.

“We need to safeguard national assets and exploit them for the good of Zimbabwe’s economy.

“The 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 in viable and profitable entities, the MIF seeks to promote economic development and stability in Zimbabwe,” he added.

Mangudya said the MIF “will prioritize understanding the needs of the entities under its armpit, reinvesting the profits for the continued growth and development of the nation.”

For now, the MIF has a group of around 26 of more than 100 state-owned companies.

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.

Energy company Zesa Holdings, Homelink Private Limited, HomeLink Finance, Fidelity Gold Refinery, Export Credit Guarantee Insurance Corporation of Zimbabwe and Aurex are also under the MIF.