Budget 2022

Mining royalties, sale of spectrum will fund R30bn sovereign wealth fund - Mboweni


South Africa will use money from the sale of broadband spectrum and mining royalties to establish a R30 billion sovereign wealth fund, Finance Minister Tito Mboweni has said.

"A sovereign wealth fund is an important long-term tool for saving and investment for future generations," Mboweni told lawmakers on Wednesday in his annual budget speech.

"It can also contribute to strengthening the fiscal framework."

The proposed fund comes at a time when South Africa is struggling to contain rising debt amid sluggish economic growth and a budget deficit projected to widen to a near three-decade high of 6.8% in the coming fiscal year. Its establishment was first mooted at least 10 years ago.

The legislative framework for the fund will be submitted to Parliament. Funding will come from the government’s plans to sell broadband spectrum this year, along with royalties from petroleum, gas and mineral rights, as well as the sale of non-core assets, future surpluses and savings, Mboweni said.

The government is also pressing ahead with plans to form a state bank that will operate as a retail financial institution premised on commercial principles, he said. The Reserve Bank has yet to grant the proposed lender an operating license.

"There are market failures in so far as the poor getting better access to the basic banking services so its also an attempt to have financial inclusion," Deputy Finance Minister David Masondo, who is leading the state-bank project, told reporters in Cape Town on Wednesday.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders