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Sovereign Wealth Funds and Infrastructure Development in Africa

Seedwell Hove ()
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Seedwell Hove: Quantum Global Research Lab

No 4206708, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: Sovereign wealth funds (SWFs) are increasingly becoming major sources of finance in many African countries. This paper analyses the potential role that SWFs could play in financing infrastructure development in Africa. The paper documents the state of infrastructure and its financing needs in Africa, dissects the anatomy of sovereign wealth funds on the continent, and assesses the extent to which sovereign wealth funds can bridge the infrastructure financing gap. The analysis shows that Africa?s infrastructure needs new sources of finance to cover the existing financing requirements. Although African SWFs are still small compared to those in other countries of the world, they have the potential to contribute meaningfully towards financing infrastructure development and fostering economic development in Africa. Putting in place favorable conditions for business and ensuring stable political and governance conditions can also attract global sovereign wealth funds to invest their massive resources in Africa. The paper also highlights some risks and opportunities for infrastructure investments on the continent.

Keywords: Sovereign wealth funds; Infrastructure development; asset allocation (search for similar items in EconPapers)
JEL-codes: E69 G15 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2016-10
New Economics Papers: this item is included in nep-afr and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Published in Proceedings of the Proceedings of the 6th Economic & Finance Conference, OECD Headquarters, Paris, Oct 2016, pages 130-156

Downloads: (external link) ... =42&iid=008&rid=6708 First version, 2016

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