President Mugabe has gazetted a Statutory Instrument that gives effect to the Sovereign Wealth Fund that is expected to go a long way in reserving income from the country’s finite mineral resources for the benefit of future generations.
The gazetting of the SI followed the gazetting of the Sovereign Wealth Fund of Zimbabwe Act (SWFZA) in November last year.
“His Excellency the President, in terms of section 1 (2) of the Sovereign Wealth Fund of Zimbabwe Act (Chapter 22:20) (No. 7 of 2014), hereby fixes the date of publications of this Statutory Instrument, as the date on which the said Act shall come into operation,” reads the Extraordinary Government Gazette published on Friday.
The SWFZ will be driven primarily by 25 percent of all royalties on mineral exports, which will be deposited, along with special dividends on the sales of diamonds, gas, granite and other minerals through the Zimbabwe Mining Development Corporation.
The Ministry of Finance said the objectives of the fund are to secure investments for the benefit and enjoyment of future generations and to support the development objectives of the government, including its long term economic and social development. In terms of Clause 4 of the Bill, it is also meant to support fiscal or macro-economic stabilisation, in particular to supplement the revenues of Zimbabwe when these are prejudiced by the fluctuation of prices payable for those minerals on which royalties and other taxes are collected for the benefit of the Consolidated Revenue Fund.
“This development constitutes a significant milestone in the attainment of the goals of Zim-Asset and more particularly, in ensuring that the country leverages on its rich natural resource endowment for sustainable development,” said the ministry.