The Bank of Zambia has suggested that the proposed setting up of a sovereign wealth fund should be housed at the central bank.
Finance Minister Alexander Chikwanda announced during the budget presentation that K100 million was allocated for the establishment of a sovereign wealth fund and suggested that the fund will be housed under the Industrial Development Corporation.
But Bank of Zambia Deputy Governor for Administration Dr Mabula Kankasa said it would be prudent if the fund was managed by the central bank.
She was speaking on Wednesday when she led a team from the Bank of Zambia in making a presentation to the Expanded Estimates Committee on the 2015 national budget at Parliament buildings.
Dr Kankasa said the Bank of Zambia has studied a number of sovereign wealth funds around the world adding that the most successful fund in Norway managed by the Central Bank of Norway.
“It is important first of all to establish the source of funding for this fund because its sustainability is also key. Secondly, as the central bank we have learned some best practices around the world in managing sovereign funds and he would like to submit that housing it under the central bank would be prudent,” Dr Kankasa said.
She added,” at this stage, we know that there could be several other proposals on managing the fund and we will wait to see how Government hopes to run the fund but as the central bank, we are in support of this great initiative as announced by the Finance Minister.”
Wherever it will be, BOZ or IDC, the sovereign wealth fund won’t be safe. Snakes. Vultures and Hyenas will always have access to that moni. That is Zambia for you.
Yes there are snakes everywhere. This is the same wreckless sense of entitlement that has brought Zambia to its knees. Work as minimal as possible and steal at the first opportunity. It’s happening everywhere in Zambia.
Put it at State House under Nsanda
You have killed me! kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk Nsanda?
Bo mai Inonge litumezi Kwaulo Hande Ndende, the two are two different SPV or funds with different management style and policy strategy There has to be a separation to ensure maximum share holder value.
There has to be a different board for the two, investments committees, difference in responsibilities of staff, with careful mention of those in the investments policy statement, use of fund managers and other services including custody, investments philosophy and criteria including allocations of various asset classes and methods of hedging This will require a proper rethink and conformance to best investments practice and global investments performance measurement It can be sit at BOZ but…
Its important also before setting the Fund that issues on the Investments Policy Statements are clearly set out and defined I know sources of funds is normally resource driven like in this case from copper ,given also the universe of sovereign wealthy funds If its allocation to IDC the criteria has to be defined according to P/E or maybe political thinking with fund sustainability long-term and then the People from IDC must be subjected to the Investments committee of SF and investments allocated as such,Investments in other foreign assets classes must also be clearly defined it should not be like the case of NAPSA without formalising the Investments Policy Statement, advert for foreign is done
Bomayi Inonge such a good person and mother very kind ,hearted litumezi shangwe
The sovereign decision is correct but needs careful thinking and structure to ensure sustenance and long-term economical support
You are actually coherent this time around, thats good.
BOZ can play a leading role. However, BOZ needs to collaborate with key player in the economy generally and the financial sector especially. Therefore, a national Task Force seems more appropriate than an internally generated BOZ initiative. The key players can include Distinguished Academics, Trade Unions, Bankers Associations, Mining Companies, Religious Bodies, Youth Associations, etc.
I thought the research departments and conceptualising frame work to work the IDC and SF is already there through ministry of commerce and other supporting ministries and agencies like Finance,CEEC and other youth empowerment
SF is a big investment into industries and assets beneficial to the country but not so attractive to private through IDC CEEC and other Youth empowerment can continue and those ideas can graduate up to this level
But really IDC and SF should be a big concept,long-term and serving many in savings and employment creation
put it under kambwili…….his has a degree frm copperstone university in luanshya.
So wherever this put, where will the money to be deposited in it come from?
From the Eurobond and the rest of Zambias US$ 4 BILLION DEBT??????
We need to fix this problem FIRST! Reckless borrowing will never create a wealth fund, is is just taking us back to being international BEGGARS!