Sovereign Fund Chief Blasts National “Culture Of Non-Payment”
Mutapa Investment Fund chief executive, Dr John Mangudya, has issued a stark warning. He states that Zimbabwe’s greatest economic threat is not a shortage of money, but a deep-seated national “culture of non-payment”.
Speaking at a recent public lecture, Dr Mangudya declared that this refusal to honour financial commitments is crippling new investment and undermining the country’s reconstruction.
The blunt assessment was delivered during the inaugural Zimpapers Public Lecture Series, held in partnership with the Harare Institute of Technology. Dr Mangudya argued that attracting capital is less of a problem than ensuring it is paid back.
“The Challenge Is How That Money Is Utilised”
Dr Mangudya, a key figure in the nation’s sovereign wealth strategy, was direct in his analysis. He stated that the failure to repay debts is a fundamental roadblock.
“I never had a problem raising funds for this country. The challenge is how that money is utilised.”
He pointed to the power utility, ZESA Holdings, as a prime example. Despite the Hwange 7 and 8 expansion projects being fully operational, Zimbabwe remains heavily indebted to its Chinese creditors, including the China Ex-Im Bank and Sino Hydro.
“Why do we owe them? They gave us a contract… Was the electricity produced? Yes, it was. Billions of kilowatt-hours. Do we still owe them money? Yes. Why? Because we didn’t pay. We did not pay, Zimbabweans. It is not about a lack of funds; it is about meeting our commitments.”
Prepaid Meters: A Necessary Solution
Dr Mangudya positioned the widespread adoption of prepaid and smart metering as a critical tool to break the cycle of arrears. He directly linked the national utility debt to domestic non-payment.
“What happened to the money? Havana kubhadhara vanhu (They did not pay). That is why I am saying to ZESA, let us move to prepaid meters. Whether you like them or not, you need to pay for what you consume.”
He used a simple analogy to justify the prepaid model.
“You go to the service station to get fuel before you begin your journey… that is prepaid. It is all about how we handle money.”
Future Projects “Dead On Arrival” Without Change
The Mutapa Investment Fund CEO issued a grave warning about the future. He suggested that major new infrastructure ventures are jeopardised by the current payment culture. He specifically mentioned a proposed US$450 million (approx. ZAR 8.5 billion) plant with India’s Jindal.
“The funding will come from those consuming the electricity. If we refuse to pay again, the project will fail.”
Dr Mangudya concluded by framing debt repayment as the essential spirit required for national revival, urging a fundamental shift in mindset towards commercial integrity.
Flipcash is Your Trusted PayPal & Crypto Exchange Partner in Zimbabwe — WhatsApp +263 77 163 9263
The post Zimbabwe’s Debt Crisis Is Self-Inflicted, We Have A Culture Of Non-Payment Warns Mangudya appeared first on iHarare News.
