by Michael Dibie
To build a solid African sovereign wealth fund, experts in the continent say Africa needs to collaborate, corporate and channel its resources to the continent. The summit, hosted by NSIA and chaired by Nigerian’s Vice President Kashim Shettima, convened top-tier representatives from sovereign funds, development finance institutions, and global capital partners.
Attendees included Wale Edun, finance minister and coordinating minister of the economy, Jumoke Oduwole, industry, trade and investment minister, Benedict Oramah, President Afreximbank, as well as leaders from, Africa50, and Africa Finance Corporation
This year’s summit with the theme “Leveraging African Sovereign Wealth Funds to Mobilise Global Capital for Transformative Development in Africa,” is taking place at a time when Africa is seeking to position itself more firmly in global capital markets.
Chair of Investment committee, NSIA, Ada Osakwe noted that Billions of dollars that has typically gone to support Africa development has been pull back by many of the developed nations, Noting that we need to truly change our mind set and leverage on the capital that we already have here to ensure it goes into capital projects
“So we need to truly change our mind set and leverage on the capital that we already have here to ensure it goes into capital projects, we need to use Africa sovereign wealth funds to catalyze investment that will change the paths of our different countries by creating jobs, sustainable jobs, income and wealth across board.” She added.
According to Afreximbank, about $400bn in foreign exchange reserves held by African central banks, are stashed outside of Africa, thereby impeding on the continent’s development and infrastructural projects.
Legal practitioner and Managing Counsel at Templars Law Firm Inna Ali said initial seed capital for Africa sovereign fund should be robust enough and on a regular basis and a strong governance culture.
“So for it to be scalable and sustainable, we need right regulatory frame work, robust laws, strong government structure within the sovereign wealth fund and having the right set of team isolated from political interferences, so once those are in place, I believe Africa is ready and ripe to scale and have a sustained a robust Africa sovereign wealth fund.” Ali said.
“The factors incubating inter cultural corporation for creative is the same inhibiting continental free trade. The same reason Africans are not trading robustly with each other is the same reason Africa creatives are not able to collaborate robustly as they can, there are infrastructural problems, it is hard to move from one country to another. there are security issues, xenophobia.” Dike Chukwumerije, Nigerian renowned Artist said.
A number of strategic and investment agreements were signed during the two-day meeting.
