Africa Briefs

26 February 2020 | Economics

SA could use mining royalties for sovereign fund

South Africa could use mining royalties to set up a proposed sovereign wealth fund, mineral resources and energy minister Gwede Mantashe has said.

President Cyril Ramaphosa said in an annual address to parliament recently the government had decided to establish a sovereign fund, but he did not say how the fund would work.

Many analysts are sceptical about the idea, given that South Africa does not have large oil and gas revenues, its mining industry is in decline and it has large fiscal and current account deficits.

"The president spoke to the sovereign wealth fund ... Many people asked the question, 'where will money come from?' I can tell you that all the mines pay a royalty to the state. It can be used to start a royalty fund," Mantashe said during a parliamentary debate last week, before his allotted time ran out.

Peter Attard Montalto, head of capital markets research at Intellidex, estimated the government would earn R9.2 billion from mining royalties in the 2020/21 fiscal year, too little for a fund of a meaningful size.

Setting up a sovereign fund is a longstanding ambition of leftist elements in the governing African National Congress (ANC) party that favour strong state control over Africa's most industrialised economy. – Nampa/Reuters

Kenya sets belt-tightening target

Kenya's government plans to cut state spending in the financial year starting in July to 23.6% of gross domestic product (GDP) from 26.0% in the current fiscal year, the finance ministry said in its budget policy statement.

Belt-tightening measures will help the government meet its target to reduce the fiscal deficit for the period to 4.9% of GDP, down from 6.3%/GDP for this fiscal year, the ministry said in the statement seen by Reuters.

The Treasury plans to borrow 222.9 billion shillings (US$2.21 billion) locally to plug the budget gap and tap another 345.1 billion shillings from foreign sources, the statement added.

President Uhuru Kenyatta's government has been criticised by voters for borrowing heavily since coming to power in 2013, and his administration was forced to raise its borrowing ceiling last year after breaching initial targets.

Kenya's fiscal deficit, which peaked at 9.1% of GDP in the 2016/17 financial year, has been exacerbated by higher spending on infrastructure projects including a new railway financed by China.

Fiscal gaps have been accompanied by the consistent failure of the Kenya Revenue Authority (KRA) to meet the government's lofty revenue collection targets. – Nampa/Reuters

Similar News

 

Shiimi evades debt trap

9 hours ago | Economics

JEMIMA BEUKESWINDHOEKFinance minister Iipumbu Shiimi has allayed fears the government will have to borrow to finance its N$8 billion stimulus package announced this week to...

Stimulus package nearly finalised

1 day - 02 April 2020 | Economics

Jo-Maré Duddy – Finance minister Iipumbu Shiimi met with prime minister Saara Kuugongelwa-Amadhila yesterday morning and briefed president Hage Geingob later the day on government’s...

Capital projects abandoned in Opuwo

1 day - 02 April 2020 | Economics

Several capital projects in Opuwo - Kunene’s regional capital - are gathering dust, the parliamentary standing committee on economics and public administration has found.The information...

Covid-19: Employment conundrum

1 day - 02 April 2020 | Economics

Jo-Maré Duddy – The Economic Social Justice Trust (ESJT) yesterday called on government to intervene to protect Namibians against the impact of Covid-19 on issues...

Shiimi: ‘Combination of sources to fund Covid relief’

1 day - 01 April 2020 | Economics

Jo-Mare Duddy - Government will “partially” dip into its savings and reserves to fund the N$8.1-billion economic stimulus and relief package announced today by finance...

Billions roll to battle Covid

1 day - 01 April 2020 | Economics

Government will pump N$8.1 billion into the economy to alleviate the impact of Covid-19 on the recessionary economy.The economic stimulus and relief package, announced by...

N$3 bn to be paid in VAT refunds

1 day - 01 April 2020 | Economics

New finance minister Iipumbu Shiimi says government will “immediately speed up” the repayment of overdue or undisputed VAT refunds.Shiimi this afternoon at State House announced...

Labour expert calls for retrenchment intervention

1 day - 01 April 2020 | Economics

Government needs to pass additional regulations that explicitly prevent the retrenchment of workers during lockdown, the Economic and Social Justice Trust (ESJT) says.Labour expert and...

State coffers won’t be locked

2 days ago - 01 April 2020 | Economics

Jo-Maré Duddy – Government will have about N$22 billion in its coffers as Namibia starts its new fiscal year today in the absence of the...

Budget delayed 'until further notice'

3 days ago - 31 March 2020 | Economics

New finance minister Iipumbu Shiimi has announced that the tabling of the 2020/21 budget will be “delayed until further notice”.Shiimi issued a statement saying the...

Latest News

Mariental flooded after cloudburst

9 hours ago | Disasters

ELLANIE SMITMARIENTALMajor flooding was experienced at Mariental yesterday morning after 120 mm of rain fell within a two-hour period.The rain started at about 08:00 and...

Geingob needs support to lead...

9 hours ago | Opinion

President Hage Geingob often gets the stick for all the challenges that the country faces, but perhaps unfairly so at times.While he arguably did not...

20 000 Jack Ma corona...

9 hours ago | Disasters

JEMIMA BEUKESWINDHOEKNamibia may only start using the 20 000 coronavirus testing kits donated by Chinese billionaire Jack Ma by the end of April.The government is...

Hefty lockdown violation fines revealed

9 hours ago | Disasters

ELLANIE SMIT WINDHOEKPeople who flout the lockdown rules during the coronavirus state of emergency could be fined up to N$2 000. This is in accordance...

Meatco to restart slaughtering

9 hours ago | Agriculture

ELLANIE SMIT WINDHOEK Meatco will restart slaughtering activities at its factory next week following a declaration that the agriculture value chain is an essential service....

Dams more than 50% full

9 hours ago | Weather

ELLANIE SMIT WINDHOEK The average dam level has risen to 56.9%, nearly twice as high as last season when the dams were only 31.1% full....

Fresh and Popping – Lockdown...

9 hours ago | Art and Entertainment

MICHAEL KAYUNDE WINDHOEK As you already know, Fresh and Popping is where we share trending songs, hot out of the booth. We tell you...

Sharing hope with gospel music

9 hours ago | Art and Entertainment

MICHAEL KAYUNDE WINDHOEKA genre with a devoted community of fans, Namibian gospel is producing more and more world-class content, like award-winning Manda Gabriel, who recently...

Keeping it real

9 hours ago | Art and Entertainment

Recently, we've had some new names on this page. The response has been awesome, but I've also received some resentful opinions. Asking why the page...

Load More