2024-05-06 08:26:16
African sovereign funds have gained in importance over recent decades, offering significant opportunities for economic development and investment diversification, specifies Henri-Louis Vedie, the author of this policy brief entitled “African sovereign funds: a second wave (2016-2023) under the sign of strategic redefinition”.
The policy brief thus recalls that over the years, the landscape of African sovereign funds has undergone significant evolution. The first wave, from the 1950s to 2015, was mainly fueled by natural resources such as oil, gas and other raw materials, while since 2015 a new wave has emerged, characterized by funds mainly financed by transfers of public assets.
This transition marks a major turning point in the perception of the continent by foreign investors. Between 2010 and 2023, fifteen new African countries created their sovereign wealth funds, demonstrating a growing awareness of the importance of these entities in stimulating economic development and attracting investments.
The study also highlights the pivotal role of the Moroccan fund, Ithmar Capital, in this changing financial landscape. Established in 2016, Ithmar Capital was elected as Chairman of the Board of Directors of the International Forum of Sovereign Wealth Funds in November 2021, demonstrating its international recognition and growing influence.
In addition, in June 2022, Ithmar Capital initiated the first Forum of African Sovereign Investors, the “Africa Sovereign Investors Forum”, bringing together around ten African sovereign funds to strengthen cooperation and the exchange of expertise.
The policy brief thus highlights the growing importance of African sovereign funds in the global economy and underlines the key role of the Moroccan fund, Ithmar Capital, in promoting cooperation and economic development on the continent and beyond.
Indeed, between 2000 and 2023, two waves of creation of sovereign funds in Africa took place. The first, from 2002 to 2014, was mainly financed by oil revenues and adopted an intergenerational approach. The second, from 2016 to 2022, focused on economic development and mobilized international capital.
Morocco, with its Ithmar Capital fund, chaired for the first time an annual meeting of the International Forum of Sovereign Wealth Funds in 2021, illustrating the significant evolution of these funds in Africa.
2024-05-06 08:26:16