THE African National Congress (ANC) wanted to establish a sovereign wealth fund (SWF) before the next term of government with the focus of the fund falling on mining investments especially in minerals and strategic energy such as coal and gas, said City Press, a weekly newspaper.
According to a report from the ANC’s national executive committee lekgotla last month cited by City Press, the party wants the establishment of the state-owned investment company to be high in its elections manifesto and its implementation to start immediately after the next administration takes office next year.
The ANC report said the SWF would enable government “… to provide a steady resource for national development objectives”. The intervention would also “… sterilise inflows of mineral rents to avoid significant exchange rate appreciation during commodity booms that displace industrial and farming exports,” said City Press.
However, Economic Freedom Fighters (EFF) deputy president, Floyd Shivambu, said his party was miles ahead with plans for its own fund. He believed the SWF ” … could be allocated shares in strategic minerals, coal, platinum and shale gas, and the [Mineral and Petroleum Resources Development Act] direct that shares be held in the company. The proceeds of these could be invested in different portfolios all over the world”.
