South Africa sees the creation of a new state company that will manage its R155 billion ($9.2 billion) property portfolio as a path to a potential sovereign wealth fund.
President Cyril Ramaphosa announced the establishment of the firm, which will oversee 88 000 buildings and 5 million hectares (12.4 million acres) of land, in his state-of-the-nation address last month.
The South African National Property Company will also be tasked with redirecting about R6 billion that government entities pay to private landlords annually into the development and upkeep of state-owned precincts, helping create jobs and stimulate the economy.
“We think that there is a long-term, value-creation opportunity that almost becomes an anchor of a sovereign-wealth fund over time,” Dean Macpherson, the minister of public works and infrastructure, said in an interview in Bloomberg’s London offices last week.
Scaling up the new firm’s portfolio to form the basis of a sovereign wealth
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