Ramaphosa defends proposed sovereign wealth fund as investment in SA's future

fin24.com

- fin24.com | 2 months ago

President Cyril Ramaphosa has defended his announcement that South Africa would look to establish a sovereign wealth fund as a bold step to invest in the country's future.

 During his State of the Nation Address last week, the president said the creation of such a fund would "preserve and grow the national endowment of our nation, giving practical meaning to the injunction that the people shall share in the country’s wealth". His announcement prompted mixed reactions, with some business lobby groups questioning its usefulness, while the Economic Freedom Fighters urged Ramaphosa to establish the fund without delay.

Critics fear the wealth fund may take up scare state resources and attention at the expense of urgent priorities such as Eskom.

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