Sovereign Wealth Fund gets a head-start

By Owen Mandovha

The National Sovereign Wealth Fund got a huge head-start after receiving its first dividend from its stake in the resources company, Kuvimba Mining Group this Thursday.

Alive to the reality that future generations are at risk of missing out on benefiting from the country’s vast mineral endowments if current earnings are not set aside and reinvested for posterity, the Second Republic established the Sovereign Wealth Fund in 2018.

Thursday was therefore a landmark day as the National Sovereign Wealth Fund received its first dividend courtesy of a five percent stake in diversified mining group, Kuvimba Mining House.

Research analyst, Mr Batanai Matsika believes the dividend declaration is a head start to cater for the economic needs of future generations.

“The Fund is now in full motion with this dividend declaration and this marks the seriousness of the Government to stabilise future economy growth by tapping into the Fund,” he said.

Economist, Persistence Gwanyanya noted that the Sovereign Wealth Fund are war chests against finite commodities.

He said, “This is the way to go and the dividend declaration of the dividend to the Fund signals a major shift in how Zimbabwe is preparing for her future. Generations to come are at risk of failing to benefit from these resources and this is a milestone achievement.”

Norway has the largest Sovereign Wealth Fund worth one trillion United States dollars, with other oil-rich nations such as Saudi Arabia and Qatar having created huge financial reserves, which have become key enablers for future economic growth.

The post Sovereign Wealth Fund gets a head-start appeared first on ZBC NEWS.

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