Harnessing Africa's sovereign wealth

Guarding the chest. BoB governor, Moses Pelaelo is ultimately charged with growing the countrys sovereign wealth fund PIC. PHATSIMO KAPENG
Guarding the chest. BoB governor, Moses Pelaelo is ultimately charged with growing the countrys sovereign wealth fund PIC. PHATSIMO KAPENG

Although African sovereign wealth funds have already shown their effectiveness, their potential remains largely untapped. By mobilising and leveraging national savings, these funds not only can increase governments’ capacity to finance public policies, but also can help to attract much-needed foreign capital. AKIM MOHAMED DAOUDA, UCHE ORJI & MAMADOU MBAYE* write

LIBREVILLE/ABUJA/DJIBOUTI: On May 18, African Heads of State, European leaders, and representatives of international institutions gathered in Paris for a summit on financing African economies. As heads of African sovereign wealth funds (SWFs), we strongly believe that mobilising national resources – and using them to attract additional foreign capital – is the only way to ensure our economies’ financial independence.

The COVID-19 pandemic has exposed the lingering vulnerabilities of African economies. They remain too sensitive to exchange-rate risk, unable to finance themselves, and too dependent on donors. In addition, adverse risk perceptions mean that most international investors and asset managers still have only a marginal presence on the continent.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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