Source: Zim’s sovereign wealth fund set to double to US$30bn | The Sunday Mail
Dr Mangudya Lincoln Towindo
VALUATION of Zimbabwe’s sovereign wealth fund — the Mutapa Investment Fund (MIF) — is projected to more than double to over US$30 billion in the next five years.
This will position MIF among Africa’s largest sovereign wealth funds by asset value.
A comprehensive valuation conducted last year by independent accounting firms placed the fund’s worth at over US$16 billion, representing approximately 7 percent of the country’s gross domestic product (GDP).
Since then, the fund’s value is forecast to have grown significantly, driven largely by a sharp increase in gold prices.
At the time of the initial valuation, gold was trading at around US$1 800 per ounce, but it has since risen past US$3 160 per ounce, dramatically increasing the value of MIF’s gold mining assets.
Other factors contributing to this growth include the ongoing recapitalisation of companies within MIF’s portfolio, a strengthening balance sheet and exploration programmes to determine the exact value of the fund’s extensive mining assets.
In addition, the fund’s investment in Invictus Energy — the Australian company exploring for oil and gas in Muzarabani — is expected to significantly boost its value once commercial exploitation begins.
In 2024, MIF underwrote US$5 million in a private share placement by Invictus to support the next phase of development at the Cabora Bassa oil and gas project in northern Zimbabwe.
This capital injection is funding critical activities, including flow testing of the Mukuyu-2 well, early stage monetisation efforts and preparations for further exploratory drilling.
Combined with the turnaround of previously loss-making entities into profitable ventures, these developments are expected to fuel rapid growth of the fund, with projections estimating a valuation of over US$30 billion, or roughly 20 percent of GDP, by 2030.
In an interview with The Sunday Mail, MIF chief executive officer Dr John Mangudya said the fund had already begun laying the groundwork for this transformation during the first quarter of 2025.
“Mutapa Investment Fund pursued a number of initiatives during the first three months of 2025 as it lays the foundation of its transformative agenda of turning around the fortunes of the portfolio companies under its ambit,” he said.
“This transformative agenda is premised on the fund’s strategic plan, which is anchored in a challenging and ambitious target of growing the gross asset value of the fund from the current level of US$16 billion to US$30 billion by 2030 and contributing 20 percent of the gross domestic product of Zimbabwe from the current 7 percent.”
The fund’s vast portfolio of mining assets, he said, is expected to anchor this accelerated growth.
The fund has embarked on a broad exploration programme targeting some of its most lucrative mining claims to unlock their full value.
“If you look at some of our mines, we already know there is gold, lithium and chrome,” said Dr Mangudya.
“What we are now saying is, when we want to develop a mine like Shamva, we begin with exploration to determine the precise value of the underground mineral resource.
“Then we produce a JORC (joint ore reserves committee) report, which provides a scientifically verified assessment of the proven resource.
“This gives investors clarity — they know exactly what they are putting their money into.”
He said at Sandawana Mine, for example, there are three identified lithium-bearing zones.
“Block A is a proven resource, where we have confirmed up to 50-60 million tonnes of spodumene, so it’s fully explored.
“Block B is partially explored — we need to complete that, and then move on to Block C.
“When we bring in an investor, both parties will have accurate data on the amount of lithium and spodumene available for extraction.”
He said exploration is critical to fully reflecting the true value of Mutapa’s assets.
“You can’t attach a value to a mineral resource without conducting exploration,” added Dr Mangudya.
“Once that is done, the new data contributes directly to the fund’s total value.
“Without exploration, you can only infer.”
Dr Mangudya added that rising gold prices have also been a major driver of the fund’s valuation.
“Gold has significantly increased the value of Mutapa,” he continued.
“When the initial valuation was done, gold was trading between US$1 800 and US$2 000.
“Now, it’s over US$3 000, so the value of our gold assets has appreciated substantially.
“Yes, lithium prices have been subdued, but they have also stabilised.”
He said the eventual commencement of production at Invictus’ gas project will further boost the fund’s value.
“With Invictus, the only issue outstanding is the production sharing agreement, which is still being negotiated between the investors and the Government,” he said.
“Lawyers for both sides are working on the final agreement.
“Once signed, it will increase investor confidence.
“We already know from the wells drilled that there is gas. It’s now just about formalising the terms.
“Meanwhile, our US$5 million investment in the private placement demonstrates our commitment and participation in the development.”
MIF’s multi-billion-dollar portfolio has its tentacles spread across a diverse range of lucrative sectors such as mineral resources, transport and logistics, financial services and real estate.
Currently, MIF is ranked among the largest publicly owned asset managers that openly declare their assets holding on the continent, after Ethiopia’s Ethiopian Investment Holdings (EIH), South Africa’s Public Investment Corporation (PIC) and Libya’s Libyan Investment Authority (LIA).
EIH is the largest sovereign wealth fund in Africa, with over US$150 billion in assets under management.
PIC manages assets valued at approximately R2,5 trillion (about US$125 billion), primarily handling pension funds, including the Government Employees Pension Fund (GEPF).
LIA, meanwhile, holds around US$67 billion in assets, largely sourced from Libya’s vast oil reserves.
In comparison, the size of MIF’s portfolio dwarfs many of its regional counterparts, including Botswana’s Pula Fund, which is valued at US$5,3 billion; Angola’s Fundo Soberano de Angola (FSDEA), which holds US$2,98 billion in assets.
Namibia’s Welwitschia Fund’s asset holdings stand at US$15 million, while Mauritius’ Sovereign Wealth Fund is valued at around US$1,5 billion.
In a State of the Nation address to Parliament last year, President Mnangagwa said the Government will leverage Zimbabwe’s sovereign wealth fund to undergird the country’s development, mainly through exploitation of the country’s natural resources.
“The mining sector continues to attract favourable investment,” he said.
“Demand for new energy minerals is also growing with its associated opportunities for the country’s entry into the value chain industries.
“Mining houses in the gold and other precious minerals sector are called to scale up production.
“Assets under the sovereign wealth fund are envisioned to bolster performance and revenue from the mining and other sectors.
“The over-arching goal is for the rich natural resource endowments of our beloved motherland to benefit all Zimbabweans.”
MIF’s diverse portfolio includes Kuvimba Mining House, a mining conglomerate with holdings in gold, lithium, nickel and platinum; National Railways of Zimbabwe; Air Zimbabwe; TelOne, a telecommunications provider; Cottco, a cotton marketing firm; and Zupco, the national public transport company.
Additionally, the fund owns Defold Mine; National Oil Company of Zimbabwe; Cold Storage Commission Limited; Petrotrade; People’s Own Savings Bank; Zimbabwe Electricity Supply Authority (Zesa), the country’s power utility; Fidelity Gold Refinery; Homelink; and Arda Seeds.
Other assets include the Zimbabwe Power Company; PowerTel Communications; Allied Timbers; Telecel, a mobile network operator; Industrial Development Corporation, a development finance institution; and Hwange Colliery Company.
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