Strengthening the Role of African Sovereign Wealth Funds in the International Financial System: Interplay between Policy, Governance, and Sustainability - Key Outcomes

Africa’s development and sustainability futures are intertwined. Traditional approaches to development, rooted in post-World War II recovery efforts, have fallen short of effecting sustainable development across Africa. Approaches that break from “business as usual” are required to advance economic development. 

Sovereign wealth funds (SWFs) are government-owned investment funds that serve as key tools for stabilizing economies, promoting development, and saving and transferring wealth to future generations. SWFs can play a unique and transformative role in addressing Africa’s financing needs by channeling money toward investment gaps as well as catalyzing and leveraging further investment. 

African governments have used SWFs to cushion the impacts of public spending, facilitate innovative infrastructural and technological development, and prioritize diversification of African assets and revenue streams. Innovative use of SWFs can help to meet African investment and development goals, improve development outcomes, enhance sustainability, improve economic governance, and strengthen policy and regulatory frameworks. 

Key Outcomes from the High-Level Meeting on the Role of African Sovereign Wealth Funds in the International Financial System: Interplay between Policy, Governance, and Sustainability—released for the Brown Capital Management Africa Forum high-level meeting on the 2022 Sovereign Wealth Fund conference, “Strengthening the Role of African Sovereign Wealth Funds in the International Financial System: Interplay between Policy, Governance, and Sustainability,” hosted by the Brown Capital Management Africa Forum at the Wilson Center provided a platform for high-level African SWF leaders, thought-leaders, and development partners to convene and focus on practical steps to strengthen the role of SWFs in the international financial system. Discussions focused on key issues related to the changing socioeconomic impacts of SWFs in the COVID-19-era; investing for impact and lessons from other sectors; facilitating the next wave of African SWFs; enhancing strategic partnerships among African SWFs and international partners; engaging multilateral organizations and development partners; and strengthening Africa’s role in the international financial system. 

This publication is part of the Brown Capital Management Africa Forum. For more information and upcoming events and publications, please see here.