Will South Africa’s Proposed Sovereign Wealth Fund Help?
Posted on 02/26/2020
South Africa Finance Minister Tito Mboweni expects the country to have a sovereign wealth fund funded by the sale of broadband spectrum and petroleum and mining royalties. The estimated initial size of the sovereign fund could be 30 billion rand (US$ 2 billion). Tito Mboweni spoke in front of South African lawmakers touting the benefits of a sovereign wealth fund such as it being an important tool for saving and investment for future generations. The legislative framework for the sovereign fund plans to be submitted to parliament.
South Africa faces a massive fiscal budget deficit, lackluster economic growth, and an expanding debt-to-gross domestic product ratio.
In 2010, South Africa considered a sovereign wealth fund.