Mutapa tackles Air Zimbabwe's legacy debts

Staff Reporter

The Mutapa Investment Fund has announced plans to address the legacy debt issue affecting Air Zimbabwe and other state-owned enterprises under its management.

According to MIF Chief Executive Officer John Mangudya, as quoted by the Zimbabwe Independent newspaper, the fund will engage with the government to assume these debts, alleviating the financial burden on the affected businesses.

Mangudya noted that the government has previously assumed debts for private sector companies, citing the example of Telecel.

"If you look at the private sector, their debts were assumed by the government. The foreign debts were assumed by the government. It is there in the government debt report. But you don't find one for NetOne?" he said.

Mangudya cited the need for a level playing field.

"So, what does it mean? It means that we need to motivate from our side as Mutapa, to the government, that what we have done for the likes of Telecel, should also be extended to NetOne, so that we level the playing field, so that they would not be burdened by the legacy debt."

Regarding Air Zimbabwe, Mangudya said, "It is the same with AirZim. We are working on those areas."

He highlighted the importance of resolving these debts for the viability of state-owned enterprises, adding that MIF is working with the government to find sustainable solutions.

In addition to addressing the debt issue, Mangudya mentioned that MIF is exploring potential partnerships to enable these companies to operate at full capacity.

"Air Zimbabwe is another one. We need to fly and we need to increase the frequency of travel between Harare and Johannesburg, Harare and Windhoek, and also to improve the frequency of flights in Zimbabwe," he said.

Mangudya emphasised the need for partnerships, stating, "We don't believe that we are going to own everything. We are also going for partnerships. And then we either lease or do some concessions. But obviously, we need now to have partnership agreements."

He noted that these firms are being impacted by both legacy debts and exchange rate movements, which affect their bottom line.