Mutapa Investments Fund Chief Executive Officer, Dr John Mangudya has underscored the critical importance of Environment Social Governance (ESG) in fostering sustainable development and responsible investment.
In a speech delivered on his behalf by Mutapa’s chief investment officer, Simbarashe Chinyemba at the Director of the Year 2024 Awards, organized by the Institute of Directors Zimbabwe (IODZ), Dr. Mangudya highlighted the pressing need for continuous education on corporate roles and responsibilities.
“Ongoing training on roles and responsibilities is vital to avoid irresponsible practices and neglecting social impact,” Mangudya said.
Mutapa Investments Fund, a state-owned entity founded on balance of payment surpluses, foreign currency operations, privatisation proceeds, government transfer payments, fiscal surpluses, and resource earnings.
Dr. Mangudya pointed out the proactive measures taken by the Fund, saying “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.”
ESG criteria, which encompass environmental stewardship, social responsibility, and governance practices, are increasingly used by investors to assess the ethical and sustainability performance of their investments.
For Zimbabwe and other Sub-Saharan African nations, strong ESG practices could be transformative. By prioritizing sustainability and responsible governance countries can position themselves as appealing destinations for foreign investment.
Dr. Mangudya’s advocacy for ESG is timely, given the growing global emphasis on sustainable development and ethical investment practices. Adopting ESG frameworks can help address several critical issues in the region, such as environmental degradation, social inequality, and governance challenges.
Moreover, as international investors increasingly seek out companies with robust ESG practices, Zimbabwe stands to gain significantly by aligning its business practices with these global standards.
