{"id":565785,"date":"2021-05-04T13:36:42","date_gmt":"2021-05-04T13:36:42","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/04\/african-sovereign-wealth-funds-are-prioritizing-the-local-over-the-global\/"},"modified":"2021-05-04T13:36:42","modified_gmt":"2021-05-04T13:36:42","slug":"african-sovereign-wealth-funds-are-prioritizing-the-local-over-the-global","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/04\/african-sovereign-wealth-funds-are-prioritizing-the-local-over-the-global\/","title":{"rendered":"African sovereign wealth funds are prioritizing the local over the global"},"content":{"rendered":"<p><strong>The pandemic was \u201ca boon\u201d for African sovereign wealth funds that invest at <\/strong><strong>home<\/strong>, providing a boost to sectors in which they were already invested <strong>\u2014<\/strong> including health, digital tech and agribusiness, the International Forum of Sovereign Wealth Funds (IFSWF) and investment firm Franklin Templeton said in <a href=\"https:\/\/www.ifswf.org\/publication\/investing-growth-and-prosperity-africa-sovereign-wealth-funds-focus-g-s-and-e\">a report<\/a>. Products linked to those sectors were in high demand in 2020, and existing investments in areas such as medical facilities and supplies and pharma became increasingly profitable. This didn\u2019t only prove a successful investment strategy, but it also encouraged SWFs to invest long-term, improving overall health services across Africa and helping to make countries more resilient to future economic and health shocks.<\/p>\n<p><strong>Covid has also helped to accelerate digitalization<\/strong>, and encouraged some funds to ramp up investments in ICT infrastructure to get more people online. This could potentially help Africa leverage its large youth population and develop a tech outsourcing industry that rivals that of India, creating well-paid jobs and slowing the brain drain caused by skilled workers seeking jobs abroad, according to the report. Among the eight established sovereign wealth funds surveyed in the report, investment in food and energy security is also an important mandate and priority area.<\/p>\n<p><strong>Prioritizing the local over the global:<\/strong> African SWFs are \u201ca new breed of state-owned investors\u201d that play a key role in attracting capital for their local economics, rather than for global financial markets, the report said. When the pandemic fully abates, these funds will continue to channel capital into their economies to drive growth post-covid, particularly those in countries with high debt and limited access to international debt markets.<\/p>\n<p><strong>This is exactly what the Sovereign Fund of Egypt has been doing:<\/strong> The SFE last year reshuffled investment priorities to focus on healthcare, pharma storage, electricity, agriculture, and other areas that were crucial to invest in at the onset of the pandemic. It established a <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/13d69470-44e2-4702-9441-3421aefe4fa3\">sub-fund<\/a> as a dedicated private equity vehicle specialized in healthcare, among other sub-funds with mandates to invest in infrastructure, fintech, and real estate.<\/p>\n<p><strong>African SWFs still pale in comparison to the world\u2019s largest players: <\/strong>Total authorized capital held by the continent\u2019s 13 sovereign funds in 2020 stood at only USD 22.8 bn, with the SFE\u2019s USD 12.7 bn (EGP 200 bn) accounting for over a half of this figure, the report said. Compare this to Norway\u2019s sovereign fund which stands at <a href=\"https:\/\/www.swfinstitute.org\/fund-rankings\/sovereign-wealth-fund\">almost<\/a> <a href=\"https:\/\/www.swfinstitute.org\/fund-rankings\/sovereign-wealth-fund\">USD 1.3 tn<\/a> or the Abu Dhabi Investment Authority, which holds almost USD 650 bn of assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pandemic was \u201ca boon\u201d for African sovereign wealth funds that invest at home, providing a boost to sectors in which they were already invested \u2014 including health, digital tech and agribusiness, the International Forum of Sovereign Wealth Funds (IFSWF) and investment firm Franklin Templeton said in a report. Products linked to those sectors were [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":565786,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9272],"tags":[7098,107,7097,155,633,290,7115,734,1510],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-565785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-africa","tag-covid-19","tag-development","tag-digitization","tag-enterprisepm","tag-financial-inclusion","tag-healthcare","tag-sovereign-wealth-funds","tag-the-macro-picture","wpautop","entry"],"acf":{"mongo_id":"73dd9601-2bba-4c65-851f-bdd790273012","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/5\/302.jpg","photo_position":"above","related_issue":[565772],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>African sovereign wealth funds are prioritizing the local over the global - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/04\/african-sovereign-wealth-funds-are-prioritizing-the-local-over-the-global\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"African sovereign wealth funds are prioritizing the local over the global\" \/>\n<meta property=\"og:description\" content=\"The pandemic was \u201ca boon\u201d for African sovereign wealth funds that invest at home, providing a boost to sectors in which they were already invested \u2014 including health, digital tech and agribusiness, the International Forum of Sovereign Wealth Funds (IFSWF) and investment firm Franklin Templeton said in a report. 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Supporting local industries and domestic\u2026","rel":"","context":"In &quot;Macro picture&quot;","block_context":{"text":"Macro picture","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainers\/macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/5\/424.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":580789,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/18\/global-sovereign-wealth-funds-didnt-have-a-great-2022\/","url_meta":{"origin":565785,"position":1},"title":"Global sovereign wealth funds didn\u2019t have a great 2022","author":"enterpriseam admin","date":"18 January 2023","format":false,"excerpt":"Even sovereign wealth funds weren\u2019t spared in the 2022 market sell-off: The value of sovereign wealth funds declined for the first time ever in 2022 on the back of the rout in the global equity and bond markets, according to industry specialist Global SWF\u2019s annual report. Sovereign wealth funds \u2014\u2026","rel":"","context":"In &quot;Macro picture&quot;","block_context":{"text":"Macro picture","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainers\/macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/1\/693.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":547414,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/21\/gulf-sovereign-funds-are-showing-their-african-neighbors-some-love\/","url_meta":{"origin":565785,"position":2},"title":"Gulf sovereign funds are showing their African neighbors some love","author":"enterpriseam admin","date":"21 June 2022","format":false,"excerpt":"Paving the way for more Gulf sovereign investment, here and across Africa? Three Gulf sovereign funds \u2014 Abu Dhabi\u2019s ADQ and the Abu Dhabi Investment Authority, and the Kuwait Investment Authority \u2014 have inked an agreement to support investment in Africa with nine of the continent's sovereign funds, including the\u2026","rel":"","context":"In &quot;Investment Watch&quot;","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/6\/255.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":594112,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/10\/20\/sovereign-wealth-fund-could-feature-manufacturing-renewables-logistics-sub-funds-planning-minister\/","url_meta":{"origin":565785,"position":3},"title":"Sovereign wealth fund could feature manufacturing, renewables, logistics sub-funds -planning minister","author":"enterpriseam admin","date":"20 October 2019","format":false,"excerpt":"Egypt\u2019s EGP 200 bn sovereign wealth fund is considering setting up several sub-funds to channel investment into the logistics, renewables, and manufacturing sectors, said Planning Minister Hala El Said. The minister also said that the SWF\u2019s newly-appointed CEO Ayman Soliman started drumming up investor interest for the fund during the\u2026","rel":"","context":"In &quot;Egypt Politics + Economics&quot;","block_context":{"text":"Egypt Politics + Economics","link":"https:\/\/enterpriseam.com\/egypt\/category\/egypt-politics-economics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":564472,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/08\/meet-the-tree-hugging-swfs\/","url_meta":{"origin":565785,"position":4},"title":"Meet the tree-hugging SWFs","author":"enterpriseam admin","date":"8 February 2021","format":false,"excerpt":"Sovereign wealth funds are piling into green investments, especially clean tech, as the push to combat climate change picks up steam, according to Barron\u2019s. The move towards green investments comes as part of the general uptick in funding for sustainable projects and appetite for environmental, social, or governance (ESG) impact,\u2026","rel":"","context":"In &quot;Macro picture&quot;","block_context":{"text":"Macro picture","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainers\/macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/2\/419.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593047,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/17\/egypts-tharaa-establishes-a-usd-20-bn-investment-platform-with-abu-dhabi-holding-company\/","url_meta":{"origin":565785,"position":5},"title":"Egypt\u2019s Tharaa establishes a USD 20 bn investment platform with Abu Dhabi Holding Company","author":"enterpriseam admin","date":"17 November 2019","format":false,"excerpt":"Tharaa, Egypt\u2019s sovereign wealth fund, to establish a USD 20 bn investment platform with Abu Dhabi Holding Company: Egypt and the UAE agreed on Thursday to establish a USD 20 bn joint investment fund to invest in a variety of sectors and transaction structures through Abu Dhabi Development Holding Company\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/565785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=565785"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/565785\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/565772"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/565786"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=565785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=565785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=565785"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=565785"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=565785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}