SA scraps sovereign wealth fund plans

"The creation of a sovereign wealth fund is best timed with stable or rising commodity prices," Economic Development Minister Ebrahim Patel said in a written reply to a parliamentary question published on his ministry's website on Monday.

"In light of current market conditions, no immediate steps are contemplated." 

The ministry proposed the fund in 2010 as part of its new growth path, a development plan that called for steps to prevent the rand from being uncompetitive and for the fund to manage foreign reserves "more actively." 

The rand has dropped 11% in the past year, while gold has slumped 15% and platinum has declined 1.2%. South Africa is the world's largest producer of platinum.

Metals and other commodities accounted for 53% of South Africa's exports in 2012, according to government data. – Bloomberg


Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Advertising
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday