The Mutapa Investment Fund (MIF) is betting on its mining portfolio to unlock fresh capital, with plans to raise US$75 million from local banks and a further US$400 million through a commodity-backed offtake facility.
The strategy, outlined in Mutapa’s 2025 results, underscores how central minerals, especially gold, have become to the fund’s turnaround plan.
The value of the mining cluster rose from US$2.41 billion to US$3.22 billion in one year, an increase of about US$814 million. This was the single biggest contributor to overall portfolio growth. The gains track a strong year for gold, as prices rose on safe-haven demand. Mutapa hopes to use this to raise money.
“Resource-backed financing, ROT (rehabilitate, operate and transfer) and PPP structures, and internally funded infrastructure investments featured prominently, reflecting a deliberate shift toward self-sustaining capital solutions and reduced fiscal dependence,” says Chief Investment Officer Simba Chinyemba. “The Fund deal-pipeline entering 2026 is advanced and execution ready, including: US$75 million domestic syndicated mining facility, US$400 million commodity offtake and throughput structured financing, over US$500 million in energy-related projects, and USD100 million rail financing facility, among other initiatives.”
Mutapa’s US$400 million plan would involve raising cash upfront from a financier in exchange for committing future mineral output, likely gold, as repayment. For Mutapa, it’s a key test of whether its restructured mining assets can reliably produce, as production is what would support the funding.
Mutapa has restructured its mining assets, moving away from a conglomerate model into commodity-specific subsidiaries covering gold, platinum, base metals, energy minerals and others. The shift is aimed at making the portfolio more attractive to investors, as investors typically prefer exposure to a single commodity rather than a mixed bag.
Revaluation gains dominate earnings
While mining is driving asset growth, Mutapa’s financial results show a different picture on underlying performance.
The fund reported total comprehensive income of US$1.4 billion for 2025. However, US$1.36 billion of this came from fair value gains, rather than from operations. Mutapa’s balance sheet, which it values at US$16.5 billion, is heavily dependent on these valuations. However, external auditors Grant Thornton issued a qualified opinion.
Say the auditors: “The qualified audit opinion was made regarding non – compliance with IAS 21 – The Effects of Changes in Foreign Exchange Rates and IFRS 13 – Fair Value Measurement. There is an emphasis of matter paragraph regarding estimation uncertainty in fair value measurements and the recognition of mining royalties payable to the Fund in terms of section 14 of the Sovereign Wealth Fund Act (Chapter 22:20).”
This means the auditors are not satisfied that Mutapa has correctly accounted for the effects of currency movements on its assets. They are not confident that Mutapa’s assets are correctly valued, casting doubt on the US$16.5 billion asset valuation. Grant Thornton is also concerned that mining royalties owed to the fund by its businesses may not have been properly recorded.
The fund made a cash surplus of just US$21.7 million. Operating cash flow was negative US$48.3 million, meaning the fund burned cash in its day-to-day activities.
Debt, governance and risks
The results also show rising debt. Mutapa took on US$124 million in borrowings in 2025, compared to none in the prior year. The largest exposure is US$108.8 million linked to the National Oil Infrastructure Company, at interest rates of between 11% and 13%.
Even after receiving US$20.3 million in dividends and US$4.3 million in interest, the fund remained cash negative, relying largely on loans to fund activities.
Mutapa’s CEO John Mangudya acknowledges deeper issues within the portfolio, citing “technical insolvency in certain entities, driven by legacy debt burdens, structurally inefficient operating models, and historical weaknesses in financial management.”
As of March 2026, six of the fund’s 31 portfolio companies had not completed their 2024 audits.
How Mutapa is governed is key to Zimbabwe’s plans to please international creditors. Under Zimbabwe’s IMF staff-monitored programme, government has committed to publishing financials for each of the companies under Mutapa.
