TelOne: Mutapa Investment Funds’ most uniquely challenging portfolio company

The Mutapa Investment Fund, with its endowment of State Operated Enterprises (SOEs) or State Invested Enterprises (SIEs), will require a high level of dexterity and adaptability to address the industry-specific challenges of its wide portfolio. A single entity managing interests in mining, transportation (over land and rail), energy and more, is not novel but its new cluster of SIEs are on opposite ends of the spectrum of active and managing the ever-changing economic environment to mostly defunct.

TelOne, with its government-held shareholding being  100% of the company, being transferred to the sovereign wealth fund, sits firmly in the collection of enterprises that are “active and managing the ever-changing economic environment”. 

The telecoms firm has weathered a number of storms, namely the decline in what was its biggest earner voice to Over-the-Top Services (OTTs) like WhatsApp, Facebook and other internet-dependent communications methods.

While also dealing with an increased demand for internet access services which was progressive in the 2010s but was further accelerated by the COVID-19 pandemic with the segment accounting for 83% of revenues as of the end of 2023.