'I can't see where government will get money for sovereign wealth fund'

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

Click on the link below to hear more...


Recommended

by NEWSROOM AI
Read More
Urgent court matters to be heard between 10am and 1pm daily - justice minister

Urgent court matters to be heard between 10am and 1pm daily - justice minister

Justice and Correctional Services Minister Ronald Lamola says other matters would be postponed during the lockdown.

'Use a homemade mask only when you go to do your shopping'

'Use a homemade mask only when you go to do your shopping'

Clement Manyathela speaks to civil engineer Piet Streicher about how masks can benefit all.

UIF urges employers to apply on behalf of their employees for relief

UIF urges employers to apply on behalf of their employees for relief

Commissioner Teboho Maruping says it takes 10 days for claims to be processed, emails should be sent to COVID19ters@labour.gov.za

Public Service Association to take government to court over wage increases

Public Service Association to take government to court over wage increases

Union assistant manager Reuben Maleka says they are in a process of finalising papers that they will file soon.

Academics propose special COVID-19 grant for low-income earners and poor

Academics propose special COVID-19 grant for low-income earners and poor

Wits senior lecturer Lumkile Mondi is one of the academics and he explains exactly what it is they are calling for.

More than 20 cases of misconduct lodged with Ipid, military ombudsman so far

More than 20 cases of misconduct lodged with Ipid, military ombudsman so far

Ipid spokesperson Sontaga Seisa says their services are available and communities should report any form of misconduct.

Popular articles
Total number of positive coronavirus cases rises to 1,380

Total number of positive coronavirus cases rises to 1,380

This is an increase of 27 cases from Tuesday's announcement. Health Minister Zweli Mkhize has tested negative for the virus.

What is an 'economic depression'? Are we heading for one? Lessons from history…

What is an 'economic depression'? Are we heading for one? Lessons from history…

The Great Depression started 91 years ago and changed everything. Bruce Whitfield speaks to economic historian Keith Breckenridge.

Sars collects R1.4tr in taxes – up 5.3% on a year before, despite the recession

Sars collects R1.4tr in taxes – up 5.3% on a year before, despite the recession

Despite the achievement, the country still lost R100 billion in uncollected taxes, says Commissioner Edward Kieswetter.

Struggling to pay a debt? Your options: credit insurance vs debt relief holiday

Struggling to pay a debt? Your options: credit insurance vs debt relief holiday

Personal Finance expert Maya Fischer-French on the pros/cons of dipping into credit insurance vs opting for a debt relief holiday.

Absa launches extensive Covid-19 payment relief programme

Absa launches extensive Covid-19 payment relief programme

Absa is providing payment relief to its retail clients as well as its business banking and wealth customers.

'Gita Ramjee was probably one of the most remarkable women you would have met'

'Gita Ramjee was probably one of the most remarkable women you would have met'

The revered South African HIV scientist passed away at a Durban hospital on Tuesday after COVID-19-related complications.

[LOCKDOWN] Sars outlines measures to cushion the COVID-19 blow

[LOCKDOWN] Sars outlines measures to cushion the COVID-19 blow

Commissioner Edward Kieswetter says they have diverted customers to their online channels and contact centres.

How to communicate with frustrated children during lockdown

How to communicate with frustrated children during lockdown

Fair Practice Mediation Services director advocate Veerash Srikison says communication can breakdown in families during this time.

Outa launches inquiry into complaints from prepaid electricity customers

Outa launches inquiry into complaints from prepaid electricity customers

The inquiry follows complaints from some people who claim that there is over-charging.

'If you have company at home, finding own space to retreat can be a challenge'

'If you have company at home, finding own space to retreat can be a challenge'

Human potential and parenting expert Nikki Bush says the lockdown is a good time to spend with family but find time for yourself.