Key Takeaways
- • Former president Kgalema Motlanthe called on South Africa to establish a sovereign wealth fund financed by a defined share of future mineral and resource revenues, proceeds from state assets, and other fiscally sustainable contributions, according to Business Day.
- • Motlanthe urged greater use of retirement-fund capital for domestic infrastructure and long-term productive investment, provided safeguards protect fund members.
- • Finance minister Enoch Godongwana acknowledged economic growth is South Africa's main challenge and said fiscal policy alone cannot solve unemployment, while stressing the need to contain debt.
- • Godongwana said reaching investment of 25% to 30% of GDP requires both public and private contributions, and clarified the figure discussed related to public investment.
- • Gugu Motlanthe warned that economic exclusion is undermining democratic confidence, and Motlanthe argued property-rights reforms should recognise family and communal ownership.
Summary
Former president Kgalema Motlanthe called on South Africa to establish a sovereign wealth fund to convert its mineral wealth into long-term investment. Speaking at the Kgalema Motlanthe Foundation's Drakensberg Inclusive Growth Forum, he said the country needed to mobilise more capital for productive investment in infrastructure, industry, agriculture and skills development, rather than allowing wealth to circulate among existing assets and a limited section of society. According to the report, the fund could be financed through a defined share of future mineral and resource revenues, proceeds from state assets and other fiscally sustainable contributions, with the aim of building lasting economic assets including infrastructure, domestic supply chains and skills.
Motlanthe also called for greater use of retirement-fund capital to support domestic infrastructure and long-term productive investment, provided that safeguards protect fund members. He emphasised the need for industrialists, manufacturers, agricultural producers and innovators who can establish enterprises, deepen domestic production and create jobs. He further identified barriers that prevent many South Africans from using homes and land as collateral, noting that residents of townships, informal settlements and communal tenure areas often lack secure property rights or title deeds. He argued reforms should recognise family and communal ownership rather than assuming individual title deeds are appropriate in every case, and cautioned that registration costs and administrative requirements could prevent people from formalising ownership.
Finance minister Enoch Godongwana said economic growth was the main challenge after years of fiscal consolidation, citing the 2008 global financial crisis, state capture, the Covid-19 pandemic and the July 2021 unrest as pressures on public finances. He said government must contain debt to protect its ability to fund education, healthcare and other essential services, but acknowledged fiscal policy alone cannot generate the growth needed to address unemployment. He identified infrastructure investment, skills development, support for small and medium-sized enterprises and a stronger industrial strategy as key parts of the response. Responding to questions, Godongwana said achieving investment of 25% to 30% of GDP required contributions from both public and private sectors, and that the figure under discussion related to public investment. During a panel moderated by Arena Holdings CEO Pule Molebeledi, former statistician-general Dr Pali Lehohla questioned when investment commitments would translate into visible infrastructure projects.
Earlier, Gugu Motlanthe, executive trustee of the Kgalema Motlanthe Foundation and forum director, warned that economic exclusion was undermining confidence in democracy, arguing the 1994 democratic settlement was not intended as the final destination. She said young people continue to face employment barriers, local government failures and persistent inequality add to public frustration, and cautioned against scapegoating migrants. She said black economic empowerment, while imperfect, remained necessary, and that corruption carried out in its name should be condemned without abandoning the principle. The forum, held under the theme "The Courage to Move Forward", brought together political and business figures to discuss geopolitics, investment in Africa and inclusive growth.
Motlanthe also called for greater use of retirement-fund capital to support domestic infrastructure and long-term productive investment, provided that safeguards protect fund members. He emphasised the need for industrialists, manufacturers, agricultural producers and innovators who can establish enterprises, deepen domestic production and create jobs. He further identified barriers that prevent many South Africans from using homes and land as collateral, noting that residents of townships, informal settlements and communal tenure areas often lack secure property rights or title deeds. He argued reforms should recognise family and communal ownership rather than assuming individual title deeds are appropriate in every case, and cautioned that registration costs and administrative requirements could prevent people from formalising ownership.
Finance minister Enoch Godongwana said economic growth was the main challenge after years of fiscal consolidation, citing the 2008 global financial crisis, state capture, the Covid-19 pandemic and the July 2021 unrest as pressures on public finances. He said government must contain debt to protect its ability to fund education, healthcare and other essential services, but acknowledged fiscal policy alone cannot generate the growth needed to address unemployment. He identified infrastructure investment, skills development, support for small and medium-sized enterprises and a stronger industrial strategy as key parts of the response. Responding to questions, Godongwana said achieving investment of 25% to 30% of GDP required contributions from both public and private sectors, and that the figure under discussion related to public investment. During a panel moderated by Arena Holdings CEO Pule Molebeledi, former statistician-general Dr Pali Lehohla questioned when investment commitments would translate into visible infrastructure projects.
Earlier, Gugu Motlanthe, executive trustee of the Kgalema Motlanthe Foundation and forum director, warned that economic exclusion was undermining confidence in democracy, arguing the 1994 democratic settlement was not intended as the final destination. She said young people continue to face employment barriers, local government failures and persistent inequality add to public frustration, and cautioned against scapegoating migrants. She said black economic empowerment, while imperfect, remained necessary, and that corruption carried out in its name should be condemned without abandoning the principle. The forum, held under the theme "The Courage to Move Forward", brought together political and business figures to discuss geopolitics, investment in Africa and inclusive growth.
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