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...

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