Tuesday, February 15, 2011

South Africa Government Unlikely to Create Sovereign-Wealth Fund This Year

South Africa’s government is unlikely to create a sovereign-wealth fund this year, according to Richard Levin, director-general of the Department of Economic Development.

Proposals to establish the fund, which would be used to help manage foreign reserves and the value of the currency, are contained in the government’s new growth plan, unveiled by Economic Development Minister Ebrahim Patel on Nov. 23.

“We need to do quite a lot of technical work” before the fund can be set up, Levin said in an interview in Cape Town today.

The fund will invest in development projects in Africa and should ensure South Africa diversifies its industrial base as its mineral resources are depleted, Patel said in a Nov. 23 interview.

Source: www.bloomberg.com

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