Tuesday, January 08, 2013

(TALKZIMBABWE) Zimbabwe Empowerment Fund grows to $4.9bn

Zimbabwe Empowerment Fund grows to $4.9bn
This article was written by Our reporter on 8 January, at 02 : 15 AM

THE Government of Zimbabwe says the Sovereign Wealth Fund (SWF) has grown to a financial capacity of over $4 billion.

The fund is expected to be used to ensure that the majority can effectively participate in the mainstream economy.

It was created after foreign owned mining companies ceded shareholding to the indigenous people under the 51-49% ratio as stipulated by the Indigenisation and Economic Empowerment Act 2007.

The Minister of Youth Development, Indigenisation and Empowerment, Mr Saviour Kasukuwere (pictured) says in 2012, government has been able to achieve a lot in the indigenisation sector.

He added that the over $4 billon raised in the SWF will be used to push forward the empowerment agenda.

“We have been able to establish the sovereign wealth fund which will effectively be used to ensure that the majority participate in the mainstream economy.

“Contrary to our sceptics, we have been able to do it and we have raised over $4 billion and hopefully by mid-2013 this will be increased,” said Mr Kasukuwere.

Turning to the overall performance in the indigenisation and empowerment sector in 2012, Mr Kasukuwere said progress was made as evidenced by the launch of the community share ownership trusts in various provinces of the country.

An SWF is a state-owned investment purse composed of revenue generated from exports of natural resources.

African countries which have sovereign wealth fund include Botswana whose fund was created in 1996 based on its diamonds and mineral revenue.

The fund is now worth an estimated US$6,9 billion.

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