Sovereign Wealth Funds are Driving a New Era of Domestic Investment.

This approach is part of a larger trend of African nations taking greater control of their financial destinies, a move that is crucial for attracting external investment and building a more resilient economic future. The research highlights that while SWFs are common in commodity-rich nations to save a portion of their resource wealth for the future, many African funds combine two or more of these functions, mixing stabilization, savings, and development. This move toward local ownership and a desire to control the narrative around African “risk” is a significant development, demonstrating a more self-reliant and strategic approach to capital management. This is also reflected in the call for Multilateral Development Banks (MDBs) to collaborate with African pension funds and SWFs to create co-investment platforms, which would foster local ownership and increase the reach of their instruments.