Zimbabwe’s Mutapa Fund Poised to Exceed US$30 Billion by 2030

The Mutapa Investment Fund (MIF), Zimbabwe’s sovereign wealth vehicle, is projected to more than double its current valuation, potentially exceeding US$30 billion within the next five years. This would position it among the largest state-owned investment entities in Africa by asset value.

An independent audit conducted last year valued the fund at over US$16 billion, equating to roughly 7% of Zimbabwe’s GDP. Since then, the fund’s estimated value has grown considerably, largely propelled by a surge in gold prices, now topping US$3,160 per ounce, up from US$1,800 during the initial valuation. This has significantly increased the value of MIF’s gold-related holdings.

Other contributing factors include ongoing restructuring efforts within MIF’s portfolio companies, improved financial health, and widespread exploration initiatives aimed at unlocking the true worth of its mining interests.

One major potential growth driver is MIF’s stake in Invictus Energy, an Australian company leading oil and gas exploration efforts in Muzarabani, northern Zimbabwe. In 2024, MIF committed US$5 million toward Invictus’ private share placement to finance further exploration at the Cabora Bassa project, including flow tests and preparations for future drilling.

MIF CEO Dr John Mangudya says this investment, along with an aggressive turnaround strategy for underperforming entities, sets the foundation for the fund’s ambitious goal of reaching US$30 billion in value and contributing 20% of national GDP by 2030.

“Our strategic plan is built on transforming the performance of our portfolio companies,” Dr Mangudya said. “We’re targeting growth from the current US$16 billion valuation to US$30 billion.”

Central to this strategy is the fund’s vast portfolio of mining assets, particularly in gold, lithium, and chrome. Exploration work is already underway at sites like Shamva Mine and Sandawana Mine, with preliminary findings indicating high-value deposits of lithium-bearing spodumene.

“Exploration is key,” Mangudya added. “We cannot estimate the true value of our mineral reserves without thorough geological assessments and validated reports like the JORC standard.”

As gold prices soar and exploration uncovers clearer mineral data, MIF expects its asset base to expand rapidly. Though lithium prices have recently dipped, Mangudya noted that they have now stabilised.

Meanwhile, the upcoming production phase of Invictus’ gas discovery is expected to further enhance MIF’s valuation. While a production-sharing agreement between Invictus and the government is still being finalised, early findings confirm the presence of gas, heightening investor interest.

MIF’s investment footprint spans across numerous strategic sectors, including mining, energy, transport, telecommunications, agriculture, and finance. Its portfolio includes firms such as Kuvimba Mining House, Air Zimbabwe, ZESA, TelOne, Cottco, Zupco, People’s Own Savings Bank, and Fidelity Gold Refinery, among many others.

On the continental scale, MIF is now among Africa’s largest openly declared state-owned funds, trailing only Ethiopia’s Ethiopian Investment Holdings (US$150 billion), South Africa’s Public Investment Corporation (US$125 billion), and Libya’s Libyan Investment Authority (US$67 billion). MIF’s size surpasses several of its regional peers, including Botswana’s Pula Fund (US$5.3 billion) and Angola’s FSDEA (US$2.98 billion).

In a recent State of the Nation address, President Emmerson Mnangagwa emphasised the central role the Mutapa Fund is expected to play in driving Zimbabwe’s economic development.

“Our natural resources must benefit every Zimbabwean,” said the president. “MIF’s investments are key to unlocking value from our mining and energy sectors.”

As Zimbabwe’s resource-rich economy continues to attract investment, MIF stands poised to act as a major vehicle for economic transformation, leveraging both domestic assets and international partnerships to fuel long-term growth.