Zimbabwe

Mine royalties to bankroll Zim wealth fund

2014-01-13 22:37
Finance Minister Patrick Chinamasa said in October Harare planned a sovereign wealth fund law by February. (File, AFP)

Finance Minister Patrick Chinamasa said in October Harare planned a sovereign wealth fund law by February. (File, AFP)

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Harare - A proposed sovereign wealth fund in Zimbabwe will be bankrolled by as much as a quarter of royalties and special dividends earned on minerals such as diamonds, gold and platinum, according to a draft bill seen on Monday.

Finance Minister Patrick Chinamasa said in October Harare planned a sovereign wealth fund law by February but hinted at the time the government might not have any money at first due to the need to overhaul crumbling infrastructure.

But a sovereign wealth fund of Zimbabwe bill seen by Reuters on Monday said a "portion, not exceeding a quarter of royalties" from seven minerals, including gold, platinum and diamonds, would be paid into the fund.

It would also benefit from "a portion, not exceeding one quarter of the 'special dividend' on the sale of diamonds, coal-bed methane gas, granite and other extractable minerals" by the state-owned Minerals Mining Corporation of Zimbabwe.

The southern African country has said it wants a fund to buy shares in foreign-owned companies, including mines, under President Robert Mugabe's controversial black economic empowerment programme.

However, there were no provisions for this in the bill.

The bill is guaranteed to pass the two chambers of parliament where Mugabe's Zanu-PF party enjoys a commanding majority after a landslide victory in presidential and parliamentary elections held last July.

Mugabe is set to be the trustee and patron of the fund, whose board will be appointed by the finance minister.

Read more on:    zanu pf  |  patrick chinamasa  |  robert mugabe  |  zimbabwe  |  mines

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