SIFISO SKENJANA, FOUNDER AND FINANCIAL ECONOMIST AT AFRA CONSULTANTS
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The ANC is looking at the possibility of using private and public pension funds to rescue the country’s struggling state-owned enterprises.
In an interview with the Sunday Times Enoch Godongwana, head of the party’s economic transformation subcommittee, said that the asset management industry currently has R6 trillion under management which should be borrowed by government.
Godongwana said using this approach to gather funds is better than going the International Monetary Fund (IMF) for a bailout.“Why would you go to the IMF and the World Bank and go and raise money when we have sufficient savings in the economy which you can borrow, probably far cheaper, and probably with little exchange rate risk?”
In an interview with the Sunday Times Enoch Godongwana, head of the party’s economic transformation subcommittee, said that the asset management industry currently has R6 trillion under management which should be borrowed by government.
Godongwana said using this approach to gather funds is better than going the International Monetary Fund (IMF) for a bailout.“Why would you go to the IMF and the World Bank and go and raise money when we have sufficient savings in the economy which you can borrow, probably far cheaper, and probably with little exchange rate risk?”
