Zimbabwe's Mutapa Investment Fund defended its $1.9 billion deal for a 35% stake in Kuvimba Mining House. MIF head John Mangudya said Treasury Bills with 10-year terms backed the purchase, not cash. These bills serve as government loans with a three-year grace period. MIF says independent firms valued KMH at $3.2 billion, making the 35% stake worth $1.1 billion. The government raised its total KMH ownership to 100% through various state entities.
MIF plans to pay off the loan early through mining joint ventures, hoping high gold prices will help. Critics question how MIF handles state assets without proper public disclosure. Reports show MIF bought the rest of KMH for another $1.6 billion, also using Treasury Bills. These deals total $3.5 billion against MIF's claimed $16 billion asset value. Senator Moses Manyengavana asked for clear figures on the fund's worth.
New rules give President Mnangagwa the power to appoint MIF leaders without parliament oversight. The fund reports only to the president rather than lawmakers. MIF can freely move foreign currency despite national exchange limits. Zimbabwe's public debt jumped from $17 billion to over $21 billion after these mining deals.
MIF plans to pay off the loan early through mining joint ventures, hoping high gold prices will help. Critics question how MIF handles state assets without proper public disclosure. Reports show MIF bought the rest of KMH for another $1.6 billion, also using Treasury Bills. These deals total $3.5 billion against MIF's claimed $16 billion asset value. Senator Moses Manyengavana asked for clear figures on the fund's worth.
New rules give President Mnangagwa the power to appoint MIF leaders without parliament oversight. The fund reports only to the president rather than lawmakers. MIF can freely move foreign currency despite national exchange limits. Zimbabwe's public debt jumped from $17 billion to over $21 billion after these mining deals.
