(Bloomberg) -- Zambia will establish a sovereign wealth fund next year to build a rainy day cushion to shield the southern African nation from financial shocks and support key sectors including health and education.
“The Wealth Fund will allow us to invest the surplus revenues from our natural resources and other sources, ensuring financial stability,” Cornwell Muleya, chief executive officer of the country’s Industrial Development Corp, said in a statement Tuesday.
A major source of money for the fund will come from the mining sector in Africa’s second-largest copper producer, as well as an estimated $1 billion from streamlining minerals licensing. Dividends from IDC holdings of state-owned enterprises will also contribute.
A key goal of the fund will be to provide a safety net during times of financial strain, as well as to make long-term investments in Zambia’s health and education sectors, alongside farming, energy and infrastructure, IDC said.
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