Africa’s State-Owned Assets Near $1 Trillion Milestone
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State-controlled financial institutions across Africa now manage nearly $1 trillion in assets, according to GlobalSWF. The increase reflects governments’ greater reliance on domestic capital as concessional finance and aid decline. Assets under management by public pension funds, central banks, and sovereign wealth vehicles have reached record levels, with many structured to attract foreign direct investment. Pension and central bank reserves account for most of the total, while sovereign wealth funds continue to expand.
Five new state funds launched in 2025—Botswana’s BSWF, the DRC’s FIS-RDC, Eswatini’s ESWF, Kenya’s KSWF, and Nigeria’s Oyo State OSWF—added to about 33 across Africa. The Libyan Investment Authority remains the largest with $68 billion under management, though African funds collectively hold only 1% of the $14.3 trillion managed by global peers. The continent’s push for internal funding comes as foreign direct investment fluctuates: UN data show inflows jumped 75% in 2024 to $97 billion, then fell 42% year-on-year in the first half of 2025 amid high interest rates, trade frictions, and geopolitical uncertainty.
The expansion of state investment institutions indicates a shift toward mobilizing domestic savings and export earnings for budget stability and development. The rise in sovereign wealth funds enhances institutional capacity but exposes differences in governance standards and commodity dependence across markets, posing both opportunities and risks for investors seeking African exposure.
