IFSWF Chairman, Obaid Amrane on the state of African sovereign wealth funds

African sovereign wealth funds are steadily gaining momentum as crucial instruments for economic development and growth on the continent. CNBC Africa's Redmi Shikla recently sat down with Obaid Amrane, Chairman of the International Forum Sovereign Wealth Fund, to delve into the state of African sovereign wealth funds, their management, governance, and their pivotal role in setting the right priorities to drive economic growth. Amrane highlighted the dual nature of African sovereign wealth funds, distinguishing between those funded by excess budgetary resources from external commerce or natural resources, and strategic development funds focused on mobilizing private sector investments to support economic policies. While these funds play a critical role in stabilizing economies and fostering long-term growth, challenges related to governance and navigating international markets persist. Despite these challenges, the success stories of African sovereign wealth funds are increasingly evident, with countries like Nigeria and Senegal leading the way in financing infrastructure projects, renewable energy initiatives, and SME financing. The role of these funds in de-risking investments and attracting international capital cannot be overstated, making them key players in Africa's economic landscape. However, the perception of high debt, interest rates, and risk associated with African markets continues to hinder the full potential of these funds. Amrane emphasized the need for African countries to develop the investment industry, enhance governance structures, and align with international investor expectations to maximize the impact of sovereign wealth funds in driving economic growth. While challenges persist, the rise of African sovereign wealth funds signals a promising future for sustainable development and investment across the continent.