Economic recovery and inclusive economic growth formed only part of the key takeaways from President Cyril Ramaphosa's State of the Nation Address (Sona).
Delivering his speech on Thursday, Ramaphosa said that the government would set up a sovereign wealth fund so that the country’s people could share its wealth from natural resources and pronounced plans to forge ahead with a state bank so that more South Africans could have access to financial services.
Is this feasible considering the dire state of public finances in South Africa?
Business Maverick journalist, Ed Stoddard shares his comments and insights.
One the sovereign wealth fund, it is possible that government is hoping that in a few years' time that when offshore gas starts being produced, in the wake of this significant discovery that Total made last year, that that could perhaps fund it.— Ed Stoddard, Journalist- Business Maverick
I can't see where else they would get the money at the present time because sovereign wealth funds generally are funded from excess born capital which is something that South Africa doesn't have at the moment.— Ed Stoddard, Journalist- Business Maverick
As far as the state bank is concerned, I don't know where the money would come from because banks need to be well capitalised...I just don't know where any of this money is coming from at the moment.— Ed Stoddard, Journalist- Business Maverick
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