THE publication of Mutapa Investment Fund (MIF)’s first audited financial statements has triggered a wide-ranging national debate, highlighting both a major institutional milestone and growing calls for deeper oversight, transparency and accountability.
MIF, which consolidates 66 state-owned enterprises (SOEs) under a single holding structure, reported a gross asset base of US$16 billion and disclosed that it had raised US$1 billion by December 2024.
The audit, conducted by Grant Thornton, represents the first consolidated financial snapshot of the portfolio since the fund became fully operational in April 2024.
Market analysts broadly welcomed the release of the statements, noting that publication itself marked progress for a sector long characterised by opacity and weak reporting.
“At a high level, the most constructive takeaway from the report is the fact that Mutapa has produced and published an audited set of financial statements within a relatively short period after operationalisation,” financial analyst Kuda Taimo said.
“Given that the fund only became fully operational in 2024 and inherited a complex portfolio of long-distressed state-owned enterprises, the completion and public release of an audited report is, in itself, a meaningful institutional milestone.”
From a governance perspective, Taimo said the audit signalled a shift away from fragmented and opaque SOE oversight towards a centralised structure with a formal board, published governance frameworks and consolidated reporting.
“The report provides a clearer baseline of the asset base, portfolio composition, governance structures and strategic intent than previously existed under fragmented SOE ownership,” he said.
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However, Taimo cautioned that the qualified audit opinion, which highlighted challenges around asset completeness and verification, showed that the valuation process was unfinished, reflecting historical weaknesses in SOE record-keeping.
Another financial analyst, who requested anonymity, urged stakeholders to adopt a longer-term view, describing MIF as “still in a formative stage”.
“A lot can happen in a year. When I reflect on what transpired during that period at Mutapa, much of it was centred on building capacity — recruiting the human resources needed to operationalise the fund and move its vision forward,” he said.
“In that sense, these are still early days. That is not to suggest there should be no accountability, but rather that we should allow time — at least until the end of this year — to assess whether the groundwork being laid is translating into the numbers and outcomes that are reasonably expected.”
While early assessments should be cautious, the analyst warned that political interference was a persistent risk that could undermine the fund’s commercial mandate.
“Historically, strategic decisions and reform initiatives intended to move these institutions forward are often undermined or sidelined by political interests and interference,” he said.
“Against that backdrop, it is clear that this fund will have to navigate pressures that risk diverting it from its stated vision. Such political agendas could ultimately affect its ability to execute its mandate and fulfil its intended role to the best of its capacity.”
Former economic planning and investment promotion minister Tapiwa Mashakada also welcomed the audit, saying transparency begins with independently verified accounts.
“The publication of performance results is a welcome development as it shows transparency,” he said.
“It is only audited accounts that can inspire public confidence, more than just management accounts.
“Mutapa Fund is a statutory body whose accounts are public and still subject to public scrutiny and parliament, that is why they have published the results.”
Equity Axis chief analyst Respect Gwenzi said the government deserved credit for pursuing SOE reform by removing entities from line ministries and placing them under a single shareholder.
“Removing the entities from line ministries and creating a fund to control them is a very impressive move. However, the pace of reform has been very slow,” he said.
“Mutapa is yet to make any positive and meaningful return on its portfolio. These results only came barely a year after the fund was calibrated and is yet to be rationalised and optimised.
“Of the total investee entities totatalling 55 when disaggregated, only five of these are profitable.”
Gwenzi said MIF would need to assert itself as an active shareholder, driving changes to boards and executive management, streamlining operations, curbing inefficiencies and pushing innovation.
“The fund will have to task management with operational streamlining and reducing excesses driving inefficiencies, while at the same time innovating,” he said.
“These conditions, together with a recalibration of business models, will naturally increase attractiveness of these entities and thus luring the much-needed capital either via equity or leverage.
“Most of the entities under MIF are former parastatals, which remain unprofitable and insolvent and were bleeding the fiscus on a lifeline extension.
“This remains the biggest reform task for IMF. How to restructure investee companies’ balance sheets and rationalise operations to achieve sustainable profitability,” Gwenzi pointed out.
Economist Gift Mugano, who has publicly positioned himself as an advocate for the fund, said the timely release of the audit and accompanying reports enabled informed public debate and deserved recognition.
“The report shows a clear roadmap of how MIF intends to transform the Zimbabwe economy and we need time to get there,” he said
On MIF raising US$1 billion in a short space of time, he said “this is unprecedented and phenomenal”, adding that “the reported comprehensive income and surplus is for MIF as an institution not consolidated portfolio companies”.
Mugano said it would be unrealistic to expect MIF to turn around entities that had been “in intensive care for more than 25 years” within just 18 months.
He argued that the report sets out a clear roadmap of intent to transform the Zimbabwean economy, adding that the process would take time.
At the same time, the audit has amplified calls for stronger, independent scrutiny.
Former finance minister Tendai Biti, while acknowledging the publication of the accounts, called on Parliament to commission an independent forensic audit.
“But to their credit, we need to commend them for at least publicising that report, which is qualified,” he said.
“This now gives an opportunity to Parliament… to grab the bull by the horns and thoroughly investigate.”
Political commentator Reuben Mbofana argued that audited accounts alone are insufficient in the absence of parliamentary oversight, from which MIF is currently exempt.
“Public funds derive legitimacy not merely from audits, but from transparent, independent scrutiny by elected representatives,” Mbofana stated.
He warned that placing the fund under the Office of the President and Cabinet heightens the risk of excessive executive control, making stronger institutional checks and balances essential.
Mbofana said public confidence would ultimately depend on regular parliamentary reporting, detailed asset disclosures, transparency around board appointments and clarity on major investment decisions.
In a statement accompany the report, MIF chief executive John Mangudya said the consolidation of SOEs was intended to secure more than 24 000 jobs while improving service delivery.
He reiterated that the fund’s mandate is long-term turnaround and value realisation, rather than short-term profitability.
Taimo agreed, noting that MIF’s value proposition lies in asset consolidation, restructuring and eventual value unlock.
“The real test will be whether future audits progressively resolve the qualifications as asset registers are cleaned up and governance continues to deepen,” he said.
