Budget 2020: Sovereign Wealth Fund to be formed

Tito Mboweni, South African Minister of Finance, delivers his 2020 Budget Speech in the South African Parliament, on February 26, 2020, in Cape Town.

Rodger Bosch / AFP

JOHANNESBURG - South Africa will soon have its own Sovereign Wealth Fund.

Finance Minister Tito Mboweni announced its formation during his budget speech on Wednesday.

Mboweni said R30-billion will go towards the fund.

WATCH: Mboweni delivers 2020 Budget Speech

The fund, however, will still need to be approved by Parliament.

“There are a variety of possible funding sources, such as the proceeds of spectrum allocation, petroleum, gas or minerals rights royalties, the sale of non-core state assets, future fiscal surpluses and money we set aside. This will ensure that we continue to invest in the future generations of this country in a fiscally-prudent manner,” said Mboweni.

He added that the process to form a state bank is underway and that preferred options for the establishment of a bank are now ready.