LUANDA — Sovereign wealth funds (SWFs) are experiencing a resurgence across resource-rich African economies. Countries like Angola, Nigeria, Senegal, and Gabon have re-structured their state investment funds, transitioning from passive reserve holdings into active domestic development and global equity investment engines.
Historically, resource funds in Africa were synonymous with poor governance and political interference. However, a new generation of fund managers is attempting to align with international standards, such as the Santiago Principles.
“The shift is structural,” argues Amina Bello. “Faced with volatile commodity prices, governments are realizing that storing commodity windfall cash in Western government bonds yields negative real returns. By investing in local infrastructure and regional private equity, they can crowd-in private capital and accelerate economic diversification.”
The Angolan Sovereign Wealth Fund (FSDEA), which holds $5 billion in assets, has recently shifted focus towards domestic agricultural infrastructure and logistics nodes, aiming to reduce the country’s heavy reliance on oil exports.
But risks remain elevated. Establishing clear insulation between political authorities and fund investments is critical. Without independent boards, audit oversight, and transparent annual reports, SWFs risk becoming off-balance-sheet vehicles for state spending. The true test will be how these funds perform during the next commodity downturn.
MR. BOLARINWA MORAKINYO is a Senior Associate at Iyiola Oladokun and Company Legal Practitioners. He obtained his Bachelor’s
Degree in Law (LL.B) from the Obafemi Awolowo
University, Nigeria, before proceeding to the University of
Ibadan for his Masters Degree (LL.M) where he focused on
Developmental Law. Bolarinwa is a diligent Legal
Practitioner with interest in varying fields of Law.
In his literary strides, Bolarinwa is a consumate critic of Socio-Economic and Political policy, an avid writer and a passionate poet.
Bolarinwa’s career practice covers dispute resolution; Banking and
Finance, Commercial Litigation and Arbitration, Electoral
Law Practice, Corporate Law Practice, Labour Law, Real
estate, Enforcement of Private Rights and Criminal litigation. He is actively involved in case management and strategy building in diverse and
complex litigation processes and is currently involved in a number of high profile
civil and corporate litigation. Bolarinwa is a Member of the Nigerian Bar Association, and holds two
completion certifications from the Citizenship and Leadership Training Centre
(CLTC) of Nigeria.
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