DJIBOUTI FOUNDING MEMBER OF “AFRICAN SOVEREIGN INVESTORS FORUM” (ASIF)
The Chief Executive Officer of the Fonds Souverain de Djibouti (FSD), Dr. Slim FERIANI, participated in the launch and signing of the Memorandum of Understanding for the creation of the African Sovereign Investors Forum (ASIF) which was held on June 20 and 21 in Rabat, Morocco.
ATTRACTING PRIVATE CAPITAL FOR INVESTMENT IN AFRICA
Dr. Slim Feriani took part on June 20 and 21 in Rabat, Morocco, in the African Sovereign Investors Forum (ASIF) launching ceremony. ASIF aims to be a platform for the cooperation of a dozen African investment funds working together to better attract foreign private capital to the financial markets to benefit development and growth in Africa. It is at the initiative of the Strategic Investment Fund of Morocco, Ithmar Capital, that was held this two-day forum.
A multi-dimensional partnership has thus been established to mobilize significant funds dedicated to finance major projects related to industrialization, infrastructure development, logistics, energy transition, e-commerce, health services, or distance education.
Even if it does not lack strengths and potential, the African continent needs significant capital to finance its growth and economic take-off, despite the crises it may experience or the adjustments to reduce its debt weight.
Sovereign Wealth Funds capture the flow of private investments to accelerate the growth and development of countries whose leaders are concerned about the future of their future generations.
According to the United Nations Conference on Trade and Development (UNCTAD), only 83 billion dollars were invested in the African continent in 2021, or 5.2% of the flow recorded worldwide. Foreign Direct Investment (FDI) in Africa must therefore be more consistent.
The leaders of the Sovereign Wealth Funds will work on this to establish a more solid and united partnership and joint projects within the framework of regional economic integration.
STRENGTHENING COOPERATION BETWEEN AFRICAN SOVEREIGN WEALTH FUNDS
This Forum aims to promote collective and concerted action by African sovereign and strategic funds to benefit the continent’s development and growth for a more resilient, inclusive, sustainable, and autonomous Africa.
The Fonds Souverain de Djibouti thus becomes a founding member of ASIF and eight other African Sovereign Wealth Funds.
The main objective of ASIF is to unite its members around crucial development issues on the continent, particularly in underfunded priority sectors.
ASIF will focus on key sectors of the continent, such as infrastructure, food security, industry, urban development, and climate change…
The Sovereign Wealth Funds members of ASIF are:
- Fundo Soberano de Angola (Angola)
- Fonds Souverain de Djibouti (FSD)
- The Sovereign Fund of Egypt (Egypt)
- Gabonese Fund for Strategic Investment (Gabon)
- Ghana Infrastructure Investment Fund (Ghana)
- Ithmar Capital (Morocco)
- Nigeria Sovereign Investment Authority (Nigeria)
- Agaciro Development Fund (Rwanda)
- The Sovereign Wealth Fund Of Senegal For Strategic Investments (Senegal)
BUILDING A DIVERSE AND MULTIFACETED PARTNERSHIP
During this ceremony, ASIF, the African Development Bank (AfDB), and Africa50 signed a tripartite letter of intent for a collaboration agreement on project identification and preparation, capital mobilization, and cooperation for developing skills and expertise.
The world’s most powerful sovereign wealth funds, Abu Dhabi Investment Authority (ADIA), ADQ, and Kuwait Investment Authority (KIA), also present at the launch ceremony, are supporting ASIF through the signing of the Rabat Declaration, illustrating the vital interest of institutional and private investors in this initiative.
This first edition saw the participation of leading experts and decision-makers in the fields of investment, economics, and sustainable development in Africa who were able to exchange on the investment opportunities that Africa offers.
Several themes were addressed in panels during the two days, including the investment priorities and opportunities; emerging in light of Africa’s untapped potential and recent economic and geopolitical developments, the role of sovereign investors in driving sustainable, resilient, and inclusive growth in Africa, and the role of patient, and savvy investors in accelerating the mobilization and deployment of private capital across Africa.
“This is a historical event—an excellent initiative for intra-African integration, partnership, and development of African sovereign wealth funds. We will be stronger together, guiding responsible investors in their quest to create sustainable value in African markets. ASIF is also a common vision of joining forces to contribute to the sustainable development of our beloved continent, Africa,” said Dr. Feriani, FSD’s Chief Executive Officer.
The birth of ASIF is proof of the strong willingness of African states to coordinate their strategies for mobilizing international capital to finance the continent’s growth. ASIF’s members and partners will undoubtedly become even more numerous.