Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa
| dc.contributor.advisor | Mthanti, Thanti | |
| dc.contributor.author | Mbalo, Usiphile | |
| dc.date.accessioned | 2025-12-17T11:15:53Z | |
| dc.date.available | 2025-12-17T11:15:53Z | |
| dc.date.issued | 2025 | |
| dc.date.updated | 2025-12-17T11:11:11Z | |
| dc.description.abstract | In 2023, the Sovereign Wealth Fund (SWF) Institute reported that assets under management for the 173 global SWFs totalled in excess of US$ 11.5 trillion, with Africa contributing only US$ 132.69 billion. These funds are invested both domestically and internationally, resulting in a favourable impact on their own countries. The objective of the present study was to determine what the prerequisites to create a SWF in South Africa. The research delineates a SWF and analyses the history thereof. The study additionally examines investment methods, governance structures, and frameworks for SWF. Within the South African context, a well-managed SWF may enhance intergenerational equity, foster inclusive growth, and bolster fiscal resilience amid global volatility and domestic socioeconomic problems. Revenue from mineral resources or the divestiture of state-owned assets may enable a SWF to stabilise South Africa's economy against foreign shocks, diminish reliance on debt, and furnish a sustainable source of revenue for social and infrastructure development. The 2020 announcement by the former Minister of Finance set an intention for the South African Government to establish a SWF by allocating ZAR 30 billion, as well as exploring various funding solutions through the sale of spectrum, allocation of petroleum, gas, and mineral rights, sale of non-core state assets, and future budget surpluses. The announcement was received with enthusiasm; however, a persistent question lingered: can South Africa establish a SWF, or is it simply an elusive ambition? The present study gathered data through semi-structured interviews with diverse industry executives in finance, development finance, and asset management. The researcher employed a qualitative exploratory research methodology to obtain insights regarding South Africa's potential for establishing a SWF. The study's major findings indicated that a SWF should be seen as a savings vehicle capable of aiding future generations considering the country's escalating debt. The SWF may potentially support South Africa during economic difficulties. For South Africa to establish a SWF, it must be founded on a robust legislative framework that enables the fund to be agile, competitive, sustainable, governed effectively, and insulated from political interference. South Africa possesses a pre-existing model from which it can derive insights and enhance to establish the fund. | |
| dc.identifier.apacitation | Mbalo, U. (2025). <i>Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa</i>. (). University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/42443 | en_ZA |
| dc.identifier.chicagocitation | Mbalo, Usiphile. <i>"Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa."</i> ., University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2025. http://hdl.handle.net/11427/42443 | en_ZA |
| dc.identifier.citation | Mbalo, U. 2025. Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa. . University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). http://hdl.handle.net/11427/42443 | en_ZA |
| dc.identifier.ris | TY - Thesis / Dissertation AU - Mbalo, Usiphile AB - In 2023, the Sovereign Wealth Fund (SWF) Institute reported that assets under management for the 173 global SWFs totalled in excess of US$ 11.5 trillion, with Africa contributing only US$ 132.69 billion. These funds are invested both domestically and internationally, resulting in a favourable impact on their own countries. The objective of the present study was to determine what the prerequisites to create a SWF in South Africa. The research delineates a SWF and analyses the history thereof. The study additionally examines investment methods, governance structures, and frameworks for SWF. Within the South African context, a well-managed SWF may enhance intergenerational equity, foster inclusive growth, and bolster fiscal resilience amid global volatility and domestic socioeconomic problems. Revenue from mineral resources or the divestiture of state-owned assets may enable a SWF to stabilise South Africa's economy against foreign shocks, diminish reliance on debt, and furnish a sustainable source of revenue for social and infrastructure development. The 2020 announcement by the former Minister of Finance set an intention for the South African Government to establish a SWF by allocating ZAR 30 billion, as well as exploring various funding solutions through the sale of spectrum, allocation of petroleum, gas, and mineral rights, sale of non-core state assets, and future budget surpluses. The announcement was received with enthusiasm; however, a persistent question lingered: can South Africa establish a SWF, or is it simply an elusive ambition? The present study gathered data through semi-structured interviews with diverse industry executives in finance, development finance, and asset management. The researcher employed a qualitative exploratory research methodology to obtain insights regarding South Africa's potential for establishing a SWF. The study's major findings indicated that a SWF should be seen as a savings vehicle capable of aiding future generations considering the country's escalating debt. The SWF may potentially support South Africa during economic difficulties. For South Africa to establish a SWF, it must be founded on a robust legislative framework that enables the fund to be agile, competitive, sustainable, governed effectively, and insulated from political interference. South Africa possesses a pre-existing model from which it can derive insights and enhance to establish the fund. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - Developmental finance LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa TI - Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa UR - http://hdl.handle.net/11427/42443 ER - | en_ZA |
| dc.identifier.uri | http://hdl.handle.net/11427/42443 | |
| dc.identifier.vancouvercitation | Mbalo U. Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa. []. University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42443 | en_ZA |
| dc.language.iso | en | |
| dc.language.rfc3066 | Eng | |
| dc.publisher.department | Graduate School of Business (GSB) | |
| dc.publisher.faculty | Faculty of Commerce | |
| dc.publisher.institution | University of Cape Town | |
| dc.subject | Developmental finance | |
| dc.title | Assessing the feasibility and prerequisites for establishing a sovereign wealth fund in South Africa | |
| dc.type | Thesis / Dissertation | |
| dc.type.qualificationlevel | Masters | |
| dc.type.qualificationlevel | MBA |