Riddle: the ANC has resolved to establish one as the custodian of the state’s share of natural resources; the EFF is pushing hard for one to house all state assets and spearhead the state’s developmental agenda; but the DA and some private economists have serious reservations about creating one in SA. What is it? Answer: a Sovereign Wealth Fund (SWF). At its December policy conference the ANC passed a resolution to establish an SWF "to ensure that the free-carry shares in mining and other resource sectors be retained by the state". But the EFF is the party really pushing the SWF agenda. It intends bringing a private member’s bill to parliament to hasten its introduction within the next two years. An SWF is a state-owned investment fund that typically invests on global markets with all its profits accruing to the state. Most of the profits are reinvested to save for future generations but a small portion is used to fund state expenditure into the domestic economy through the usual bu...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now