South Africa to establish wealth fund to bolster economy

President Cyril Ramaphosa has warned South Africans that the country’s economy is stalling and that public finances are under severe pressure. 

Speaking in the State of the Nation address on Thursday, the president blamed persistent power shortages for the failing economy and said that several state-owned enterprises were also in distress.

Among the firms in crisis are South African Airways and the power company Eskom - both teetering on the edge of bankruptcy and currently under government administration. 

Mr Ramaphosa also announced that South Africa would establish a sovereign wealth fund and set up a state bank in order to extend access to financial services. 

The president went on to highlight youth unemployment - which currently stands at around 50% - as the most serious crisis facing the country.

His speech was delayed by over an hour on Thursday, due to disruption from the opposition Economic Freedom Fighters and their leader Julius Malema. The party eventually left the chamber, accompanied by loud jeers.

Photo: AFP