Zimbabwean President Emmerson Mnangagwa has appointed Kudakwashe Tagwirei, a tycoon sanctioned by the US and UK for alleged corruption, as the country’s minister of economic development and investment promotion, the president said in a statement on Thursday.
Splitting the Finance Ministry to Accommodate a Close Ally
The appointment splits the previously combined Ministry of Finance, Economic Development and Investment Promotion. While Mthuli Ncube remains finance minister, Tagwirei takes the economic development and investment functions. Chief Secretary to the President and Cabinet Martin Rushwaya confirmed the appointment in a statement, noting it is with immediate effect under Section 104, Subsection (1) of the Constitution of Zimbabwe.
Accumulating his wealth through state agriculture equipment and fertiliser deals, mine acquisitions from the government, and fuel-supply agreements, Tagwirei earned the local moniker “queen bee” due to his vast sway. Earlier this year, Tagwirei emerged as one of the most prominent supporters advocating for Mnangagwa’s successful push to pass a constitutional amendment prolonging his tenure. Tagwirei was appointed to the Senate by Mnangagwa after the constitutional amendment passed in July.
Sanctions History and the Challenges of Foreign Investment
The transition places a businessman targeted by Western governments directly at the helm of attracting foreign capital. The United States first sanctioned Tagwirei and his company, Sakunda Holdings, in August 2020. The US Treasury department claimed that he leveraged connections with high-ranking government figures to obtain official deals and preferential foreign exchange availability. In March 2024, Washington terminated its country-focused sanctions arrangement for Zimbabwe while re-imposing sanctions on Tagwirei under the Global Magnitsky act.
Britain imposed sanctions on Tagwirei in July 2021, including an asset freeze and travel ban. According to assertions by British authorities, Sakunda profited Tagwirei at the expense of macroeconomic stability by cashing in Zimbabwean Treasury bills at rates reaching ten times their official worth. Tagwirei has denied wrongdoing.
Bringing a sanctioned figure into an explicit investment promotion role creates practical challenges: promoting investment involves engagement with companies, banks and financiers that must observe sanctions rules. The public announcement of the appointment omitted any details regarding conflict-of-interest management protocols or whether he intends to divest from his commercial enterprises.
Political Friction Within the Ruling Party
Tagwirei made his official debut in politics last year by joining the ruling party’s top decision-making organ, a transition accompanied by local press reports that he distributed 300 high-end automobiles to high-ranking party officials. Constantino Chiwenga, Mnangagwa’s vice-president and a former military leader, criticised Tagwirei for “buying” his way into the party and criticised Mnangagwa’s bid to extend his term.
Mnangagwa has also courted other wealthy businessmen, including gold trader Scott Sakupwanya, a ruling party MP. Passing away last week in a helicopter accident was Wicknell Chivayo, an individual frequently spotted alongside Mnangagwa, which included a joint appearance during a gathering with President Cyril Ramaphosa.
