Wealth fund can benefit all in SA

It’s not often we find ourselves sympathetic to the arguments of the SA Communist Party (SACP), especially when it comes to economic policy.

However, their pushing for a national “sovereign wealth fund” should not be dismissed out of hand.

The concept was part of the ANC’s election manifesto ahead of the May elections, although it didn’t make much of a blip on the radar of voters.

The SACP believes South Africa should take more advantage of its natural resources, rather than seeing foreign business rake in the profits.

They cite the example of the Norwegian Oil Fund as being the way we should go.

In principle this is a good idea – which is why it should be considered.

If the intent and execution is to gather more funds to build a better life for all – and as long as it is not the communists’ beloved idea of nationalisation in another guise – it could benefit the whole country.

However, the point of difference with the Norwegian Oil Fund is that the European country has massive oil revenues and significant reserves of that resource.

ALSO READ: Is the tripartite alliance crumbling? Malatji dares SACP to contest elections alone

Despite the gold boom that put this country on its feet financially, our mineral resources are dwindling and become ever more expensive – and less profitable – to extract.

Levies or increased royalty fees to go towards a sovereign wealth fund could deter the big investors – foreign or domestic – who are the only ones who can successfully pull off new resource exploitation ventures.

But, given that this is South Africa and that untold billions have already been stolen from state coffers – money intended for the “better life for all” project – there is a grave danger that the ANC and its greedy hangers-on will find the money well too difficult to resist.

Cure that and a sovereign wealth fund might work.

ALSO READ: ‘The ANC is not a branch of the SACP’: Mbalula tells Mapaila to stop attacking his party