THE Mutapa Investment Fund has established an environmental, social and governance (ESG) board committee to instil such practices into the State-owned firms under its wings.
There are 30 State-owned enterprises under the country’s sovereign wealth fund, from 22 in February.
Institutions that adopt ESG practices attract foreign investors, with billions being channelled every year to support projects that are ESG-compliant.
Mutapa chief executive officer John Mangudya announced the ESG board committee at the Director of the Year Awards 2024.
The awards were organised by the Institute of Directors Zimbabwe (IODZ) and held under the theme, Celebrating Leadership Excellence.
“Ongoing training on roles and responsibilities is vital to avoid irresponsible practices and neglecting social impact,” he said, in a speech read on his behalf by Mutapa’s chief investment officer, Simbarashe Chinyemba.
“The Institute has been a leading voice on ESG and at Mutapa we have established an ESG board committee to ensure its critical focus is instilled in our portfolio companies. It is crucial to apply ESG in developing countries.”
He implored business leaders to embrace responsible practices that prioritise both financial gains and positive social impacts.
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IODZ encourages directors to push for ESG practices within their institutions.
Mangudya said responsible business practices from sourcing to community engagement were not just about compliance.
They are fundamental to building a resilient, inclusive economy that benefits all Zimbabweans, he said.
The Mutapa boss did, however, acknowledged the economic challenges faced by Zimbabwean businesses.
He called for a supportive ecosystem, strengthened regulations, incentives and collaboration between various stakeholders.
The awards were sponsored by the Zimbabwe National Roads Administration, Old Mutual Zimbabwe and Econet Wireless Zimbabwe.
The awards were split into 12 categories.
The Overall Director of the Year Award went to property investor Mashonaland Holdings, which also scooped the Director (Large & Listed) and Board of the Year Awards. The firm’s chairperson, Grace Bema, also won the Chairman of the Year Award.
Report for the Year Award went to Innscor Africa Limited while First Capital Bank Zimbabwe was named as the Best Diverse Corporation.
Zimbabwe Revenue Authority commissioner general Regina Chinamasa took Best CEO Award, Best SME Director Award went to Steelmate Zimbabwe CEO Clive Chisenye and the Woman Director of the Year Award was won by Chipo Mafunga, co-founding and managing partner of Chimuka Mafunga Attorneys.
Old Mutual Zimbabwe Digital Services managing director Arthur Matsaudza won the Best Young Director Award.
