Durban — Proposals are under way to create a KwaZulu-Natal Wealth Fund to assist the dwindling provincial coffers and grow the economy.
These were the sentiments of Economic Development, Tourism and Environmental Affairs (EDTEA) MEC Siboniso Duma at the launch held in Durban on Wednesday.
Duma said in order for the economy of the country to grow and be in a position to cater for all the needs of its people, this fund would serve as a surplus that would be a reserve to help the provincial government be able “to fill in the gaps” that open up when government funding gets depleted.
The fund would be an asset in terms of even assisting the education sector in augmenting the gaps and shortages that face the National Student Financial Aid Scheme (NSFAS) annually, he said.
Duma believes that KZN is one of the country’s fastest developing provinces. The government planned to hold izimbizo, and host summits and workshops in townships and rural areas as a branding exercise.
“It must be marketed so that the people must be informed that if they need a loan they should consider the wealth fund. This fund is bringing together all government entities to work as a unit to help develop and build our society,” Duma said.
Moses Kotane Institute (MKI) CEO Dr Thandeka Ellenson said the institute served as the machinery for the province to help it with research into all its aspects that needed new ideas and innovations that would help the government be able to do its work efficiently.
As a partner in the formation of the fund, MKI emphasised the role it plays in supporting the KZN government to achieve its mandate of providing its people with services, and all other aspects necessary for societal development.
MKI gathers information for the provincial government to aid it in performing its mandate with ease.
“We have realised that the current fiscal budget is not enough. Therefore we want this fund to assist us developing the provincial economy and empower our people,” Ellenson said.
Ithala Development Finance Corporation group chief executive Pearl Bengu said they would support the fund by providing it with economic and investment activities.
CEO of Dube TradePort Hamish Erskine said: “Reliable and well-paced infrastructure is vital for the survival of all economies.
“Therefore, the fund will also need well-developed and well-placed infrastructure. Water, electricity, roads, buildings and complexes are necessary for economic development.”
EDTEA head of department Nhlakanipho Nkontwana said the province had taken a bold step to establish the fund.
“Because of financial constraints, as a government we have had to look at other options to augment and grow the province’s economy.
“We want to make sure that the people of this province benefit, create employment, and be able to participate more in the export industry.
“As a government we have realised that the current fiscal budget is not enough, therefore we want this fund to assist us in the developing of the provincial economy, and empower our people.
“We have sold the private sector the idea of becoming part of this fund, and help us in the development of the province of KwaZulu-Natal,” Nkontwana stressed.
KZN Gaming CEO Portia Baloyi said her entity’s role in support the fund would be to source funding investment from the gaming sector such as the Wild Coast Sun, and the Suncoast Casino to help in the growth of the fund.
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