Zambia will establish a sovereign wealth fund in 2025 to build a rainy day cushion to shield it from financial shocks and support key sectors including health and education.
Details
A major source of money for the fund will come from the mining sector in Zambia, as well as an estimated $1 billion from streamlining minerals licensing. Dividends from IDC holdings of state-owned enterprises will also contribute.
Why It Matters
A key goal of the fund will be to provide a safety net during times of financial strain, as well as to make long-term investments in Zambia’s health and education sectors, alongside farming, energy and infrastructure.
What They’re Saying
“The Wealth Fund will allow us to invest the surplus revenues from our natural resources and other sources, ensuring financial stability,” Cornwell Muleya, chief executive officer of the country’s Industrial Development Corp.
Data Insights
Libya currently has the highest amount in Sovereign Wealth Funds in Africa with an estimated $68 Billion.
Source: Bloomberg
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