Published: 25 November 2013

Zimbabwe's planned sovereign wealth fund may get as much as a quarter of mining royalties and the same share of "special dividends" on state mineral and metal sales.

Parliament will also be able to appropriate money to benefit the fund.

A 16-member board will decide on the fund's activities, allowing it to make withdrawals, primarily to pay for infrastructure developments, according to a draft of the Sovereign Wealth Fund of Zimbabwe Act obtained by Bloomberg News.

"That document will be taken to Parliament sometime early next year," Mines and Mining Development Deputy Minister Fred Moyo said in an interview.

"It's critical for us to have a sovereign wealth fund, and that's what every nation should do to address vulnerable situations."

President Robert Mugabe, who extended his 33-year rule in July elections, is considering a range of options to finance the recovery of the economy.

Apart from the sovereign wealth fund, the Government is also considering the sale of bonds, securitization of remittances, re-engagement with international finance institutions and the creation of special economic zones, according to a separate document signed by Mugabe and obtained from the Ministry of Finance on Nov 15.

- Bloomberg

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