Proposed wealth fund for KwaZulu-Natal gains traction

Managing Director of Organic Group Holdings Floyd Sibandze, CEO of Kabusha Advisory Services Dr Steven Msomi, CEO of Ithala SOC Limited Thulani Vilakazi and CEO of KZN Growth Fund Kaya Ngqaka during the KZN Wealth fund conference held at the Durban ICC arena. Picture: Tumi Pakkies/African News Agency (ANA)

Managing Director of Organic Group Holdings Floyd Sibandze, CEO of Kabusha Advisory Services Dr Steven Msomi, CEO of Ithala SOC Limited Thulani Vilakazi and CEO of KZN Growth Fund Kaya Ngqaka during the KZN Wealth fund conference held at the Durban ICC arena. Picture: Tumi Pakkies/African News Agency (ANA)

Published Mar 15, 2023

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Durban — The KwaZulu-Natal provincial government has taken an enormous step in developing a wealth fund with the aim of augmenting government funding and sustaining the economy of the province.

Economic Development, Tourism and Environmental Affairs MEC Siboniso Duma made the remark at the KZN Wealth Fund conference on Wednesday.

Duma added that this had been driven by the reality that relying on government funding is not sustainable because, in most cases, government funding is not enough to sustain all aspects and needs of the province's communities.

He emphasised that the wealth fund would help drive the KZN provincial economic development and would pay more focus on the economical development of the people of KZN.

Duma said the value of the fund must be to pay more focus on where the ordinary man of the province lived. Duma said the fund must be made accessible to the ordinary people of the province and all members of society.

Duma said that if the fund formation was successful, it would help address lots of imbalances that exist in our society.

“South Africa is said to be servicing about R1 billion debt per day, and at the rate of having to disburse around R38 billion towards social grants every month, the country is most likely to, in the long run, find this unsustainable, and unaffordable,” he said.

Duma said the fund would make the country self-reliant. He went on to say that the youth and women should be the central drivers of this initiative. He suggested that Ithala Bank might have to be re-branded so that it is able to service the ordinary members of society.

Duma added that as members of society, we are all at the centre of that economy. Therefore, society must be able to drive the economy of the country.

“eThekwini, as the heartbeat city of KZN, must be spruced up in order for it to attract more investors into the province to plough their investments and help build this vibrant province,” he said.

Duma further addressed the issue of multitudes of people who flock to Durban every year. For example, students who come to Durban because of study opportunities and job seekers, as well as those seeking to start small business opportunities.

Duma said the fund would therefore help provide facilities and opportunities to live in a world-class and dynamic city - a status that Durban is likely to achieve if initiatives such as the wealth fund become a success.

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