A major US$25 million transmission cable manufacturing plant will be built in Harare in a joint venture between Zesa Enterprises (Pvt) Ltd and the Management Services Company of the United Arab Emirates, with the Cabinet approving the huge investment yesterday.
Speaking after yesterday’s Cabinet meeting, Minister of Information, Publicity and Broadcasting Services, Genevan Moswere, said the joint venture project would enable the transfer of technology and expertise to ZESA Enterprises and its employees and provide a market for Zimbabwe’s copper mines.
The proposal was presented by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube.
“Cabinet has approved ZESA Enterprises (Pvt) Ltd to enter into a framework agreement with Management Services Company (to establish) a US$25 million transmission cable manufacturing plant in Harare,” he said.
“The project will ensure the availability of power cables to revitalize and expand transmission and distribution networks to achieve national goals of increasing access to electricity.”
Minister Moswer said those working in the mining value chains, cable manufacturing and manufacturing industries will benefit greatly from the project.
Local copper mines will have a local market for their products, and there will be significant employment opportunities for Zimbabweans.
“Value chains will also contribute to increased GDP, through sales of cables and related products locally, regionally and continentally which will also include exports.” He said.
Zesa Holdings joins three of its subsidiaries under the ownership of Mutapa Investment Fund, the national sovereign wealth fund, with only the National Grid and sales facilities remaining under direct state control.
In Legal Instrument No. 51 published yesterday, President Mnangagwa added state shareholding in seven companies to the list of assets of the Mutapa Investment Fund.
Besides shares in Zesa Holdings and its subsidiary Zesa Enterprises, a manufacturer, the president added five companies owned by the Reserve Bank of Zimbabwe.
These are: Oryx, the major jewelry maker; Export Credit Guarantee Corporation of Zimbabwe; Fidelity Gold Refinery; HomeLink Private Limited and HomeLink Finance.
Zisa last September saw two subsidiaries move to Mutapa: Zimbabwe Power Corporation, which owns and operates the Kariba South and Hwange thermal power stations and owns the sites of the three now-closed small thermal power plants, and Powertel, which owns, leases and operates the thermal power plant. Connecting the fiber optic network to the national network.
The Mutapa Investment Fund was an upgrade and major rebranding undertaken in September last year of the original 2014 sovereign wealth fund.
This upgrade saw the government’s stakes in a group of state-owned entities and former parastatals transferred to the fund along with other government investments.
The purpose of using Mutapa to own investments is to help ensure that they are profitable and well-managed. Announce
