Cabinet approves Sovereign Wealth Fund Bill

Cabinet has approved the Sovereign Wealth Fund Bill, paving way for the establishment of the fund to be anchored by the country's abundant mineral resources.

Zimbabwe has said it wanted to create a Sovereign Wealth Fund to buy shares in foreign owned companies under the indigenisation and empowerment programme and also to finance various infrastructure projects.

Finance and Economic Development Minister Patrick Chinamasa said setting up the fund would help Zimbabwe accrue benefits from its natural resources wealth.

"We are saying we have a resource which is underground. When exploited this resource is depleting, we need also to see what is our benefit during the process of depletion, that is what we are saying and for your own information we have already passed through cabinet a sovereign wealth fund bill which should shortly be gazetted," he said.

A Sovereign Wealth Fund is defined as a state-owned investment fund derived from the exports of a country's natural resources for investment in the stock market, bonds or real estate.