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Africa Sovereign Investors Forum: A win for Africa? 

Rabat, Morocco.  

June 20, 2022 

What happens when several sovereign wealth funds come together for a common good and goal? They bring about the birth of the Africa Sovereign Investors Forum (ASIF), a platform focused on project development and investment promotion on the continent. 

Sovereign wealth funds (SWFs) are usually government-sponsored or -backed investment funds whose principal role is to invest profitably accumulated reserves of foreign currencies. For a long time, such SWFs, in countries that had amassed huge quantities of dollars, reinvested these funds in US Treasury securities. In recent times though, things have changed and these funds have become more sophisticated, and are increasingly taking equity positions in foreign firms. 

Last month, nine of such funds across Africa signed a partnership and launched the ASIF, a formation instigated by Ithmar Capital, Morocco. The forum seeks to promote joint activities by Africa’s sovereign wealth funds as well as strategic funds for the development of the continent into a more self-reliant one.  

The nine member countries on the platform represent almost all the regions of the African continent and are:  

  • Fundo Soberano de Angola  
  • Fonds Souverain de Djibouti 
  • The Sovereign Fund of Egypt  
  • Fonds Gabonais d’Investissements Stratégiques  
  • Ghana Infrastructure Investment Fund 
  • Ithmar Capital, Morocco 
  • Nigeria Sovereign Investment Authority  
  • Agaciro Development Fund, Rwanda 
  • Fonds Souverain d’Investissements Stratégiques, Senegal 

Together, they manage a total of $12.6 b. 

The Ethiopian Investment Holdings hopes to join ASIF in the future while the African Development Bank (AfDB) considers itself an honorary member of ASIF and will support it to ensure its success.  

As an initiative led by Ithmar Capital, its CEO, Obaid Amrane, becomes the inaugural chairperson of ASIF. 

Related to this was the signing of an MoU by ASIF, Abu Dhabi Developmental Holding Company (ADQ), Abu Dhabi Investment Authority (ADIA),  and Al Ajial Holding on behalf of the Kuwait Investment Authority. The Qatar Investment Authority was also present.  

Another MoU among AfDB, Africa50 and ASIF was signed to cooperate on project development and financing of climate resilient infrastructure and industrialization, mobilization of institutional capital for Africa’s benefit, co-investment and technical assistance, and identification of transformational strategic investable opportunities.  

A key part of AfDB’s strategy is to utilize an estimated $2 trillion of assets under management (AUM) from African SWFs – strategic investment funds, pension funds, investable pools from insurance companies – and direct them towards the development of Africa’s infrastructure and industrialization. 
 

Implications For Africa 

First off, collaborations of nations for positive, mutually beneficial purposes are always an encouraging sign. ASIF brings nine African countries together, not only for individual benefits but also for the commonwealth of the continent. That in itself is a huge plus. 

The very nature of ASIF lays a foundation for building a multi-dimensional partnership that will reinforce existing inter-African relations, and ultimately contribute to the continent’s growth and progress.  

ASIF has set lofty goals for itself as it plans to address key sectors for the continent – infrastructure, food security, industrialization, urbanization and climate change.  

Amrane said: “ASIF’s main objective is to accelerate the development of investment opportunities and to mobilize patient capital. As sovereign investors, we see strong complementarities with African Development Bank and Africa50, especially that our visions are aligned regarding project preparation and capital mobilization. We are pleased today to formalize ASIF, AfDB and Africa50’s mutual desire to collaborate; for we have a common objective to foster investment in climate resilient projects, among others, according to our respective mandate.” 

In addition, the agreement will address the identification and preparation of projects, a vital factor in attracting financing into any projects. 

  

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