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