South Africa is in deep trouble and the government will need to find new ways to fund its struggling state-owned enterprises, according to the chief economist at the Efficient Group, Dawie Roodt,<\/p>\n
One of the ways that the government could try and raise money is through prescribed assets, he said.<\/p>\n
“For instance, you could force pension funds to lend money to Eskom. Of course, that is not necessarily a very good investment and it is unlikely you will get a good return.<\/p>\n
“I do believe that we will eventually see prescribed assets, but I think it is a very long process and at this stage, I would not advise people to react too hastily,” he said.<\/p>\n
“Wait to see what is going to happen before you make decisions like resigning and trying to get your money out of your pension fund.”<\/p>\n
In August, President Cyril Ramaphosa said that South Africa should investigate<\/a><\/strong>\u00a0using worker pensions to finance development and infrastructure projects.<\/p>\n \u201cWe need to discuss this matter (prescribed assets) and we need to discuss it with a view to actually saying what is it we can do to utilise the various resources in our country to generate growth in a purposeful manner,\u201d Ramaphosa said.<\/p>\n