The Mutapa Investment Fund (MIF) has defended the Government of Zimbabwe’s acquisition of a 35% stake in Kuvimba Mining House (KMH), clarifying that the US$1.9 billion transaction involved Treasury Bonds (TBs) and not immediate cash outflows, as falsely reported in some online platforms.
In a press release dated 24 April 2025, MIF CEO Dr. John P. Mangudya confirmed that the bonds, with a 10-year tenure and a 3-year grace period, were issued as a loan facility to the Fund, ensuring the government’s shareholding in KMH increased from 65% to 100% without creating instant liquidity pressure.
“This was not a cash payment,” Mangudya emphasized. “The US$1.9 billion in TBs is structured as a long-term loan with repayments spread over a decade. The arrangement strengthens Government ownership while keeping fiscal strain in check.”
The 100% ownership is now structured across several key institutions: MIF (63%), Datvest Nominees representing former farmers’ compensation (12.5%), IPEC (5%), Deposit Protection Corporation (5%), Public Service Commission (7%), and empowerment-focused entities including War Veterans, Women, and Youth groups (each holding 2.5%).
A joint valuation by two independent advisory firms pegged KMH’s worth at US$3.2 billion as of October 2023, thanks largely to strong asset growth in platinum, gold, and lithium, particularly at Sandawana Mines. The 35% stake was thus valued at US$1.1 billion, matching the present value of the TBs using a 40% discount rate.
To mitigate fiscal exposure, MIF is finalizing an aggressive asset-backed repayment strategy focused on joint ventures and increased mineral output. High-performing commodities like gold, currently enjoying robust global prices, are central to this strategy. The long-term goal is to retire the TBs through a share buyback arrangement, preserving national equity while limiting public debt exposure.
MIF reiterated its commitment to transparency and sound investment management, reaffirming that the transaction is not only financially strategic but also nationally empowering, positioning Zimbabwe’s mineral wealth at the heart of inclusive and sustainable economic growth.
