SACP welcomes plan to set up sovereign wealth fund

businesslive.co.za

- businesslive.co.za | 2 weeks ago

The SACP has welcomed the announcement by President Cyril Ramaphosa in his Thursday state of the nation address (Sona) that a sovereign wealth fund will be created.

The idea was first proposed by the party, which believes it can hold equity stakes in companies on behalf of the nation, rather than individuals doing so as a result of BEE. However Intellidex head of capital market research Peter Attard Montalto has slammed the proposal as “a crazy idea when there is a current-account deficit that is persistent and no spare money lying around.

It does make sense in the very long term to benefit from hard currency generated by oil and gas exploration, but that is a 10-year plus narrative.

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