South Africa to establish wealth fund for economy boost

South Africa’s president Cyril Ramaphosa has warned that his country is facing a stark reality of a stagnant economy and rising unemployment.

He highlighted youth unemployment which stands at around 50 percent as the most serious crisis.

But Mr Ramaphosa insisted he was winning the fight against corruption.

He spoke during a state of the nation address in the country.

The South African leader blamed persistent power shortages for the faltering economy and said several state-owned enterprises were in distress.

He said South Africa would establish a sovereign wealth fund and set up a state bank to extend access to financial services.