Mutapa Fund Partners with Afreximbank in US$50 Mil...

Mutapa Fund Partners with Afreximbank in US$50 Million Investment Projects Deal

Oscar J Jeke

Zim Now Reporter

The Mutapa Investment Fund has partnered with the African Export-Import Bank to mobilize up to US$50 million for the development of bankable investment projects. The collaboration was formalized through a Joint Project Preparation Facility Framework Agreement, aimed at funding critical preparatory activities such as feasibility studies and technical assistance to make projects more attractive to investors.

In a statement released on Monday, Afreximbank highlighted the significance of the agreement, noting its role in helping MIF secure preparatory funding. The initiative is set to generate a pipeline of viable projects across key sectors, including energy, transport and logistics, agro-processing, mining, and beneficiation.

“Through this partnership, Afreximbank will support MIF’s portfolio of investee companies to access project preparatory funding, creating a robust pipeline of bankable projects that Afreximbank, MIF, and other financial institutions can readily finance,” Afreximbank said. “The collaboration marks a bold step towards unlocking investments into energy, transport and logistics, agro-processing, solid minerals development and beneficiation, as well as industrial and allied sectors.”

This agreement aligns with Mutapa Fund’s strategy of revitalizing state assets, many of which have struggled due to years of mismanagement. The fund has been proactive in attracting foreign investment, exemplified by its plans to develop a lithium project at Sandawana. In October, Mutapa CEO John Mangudya disclosed that a comprehensive assessment had valued the fund’s assets at US$16 billion.

Recent policy reforms have further empowered the fund to pursue its investment strategy. Last year, a government gazette exempted MIF from the Public Procurement and Disposal of Public Assets Act, providing greater flexibility in decision-making on asset acquisition and sales.

Additionally, legislative changes in November 2023 authorized MIF to use state assets as collateral for borrowing, enhancing its financial capacity to pursue large-scale investment opportunities.

The partnership between MIF and Afreximbank is expected to unlock critical investments while strengthening the financial viability of state assets, marking a major step towards sustainable economic development.