CATALYSING DIGITAL ECONOMY IN AFRICA: THE ROLE OF SOVEREIGN WEALTH FUNDS

ABSTRACT

Sovereign Wealth Funds (SWFs) are vehicles set up by national or sub-national governments to pursue diverse objectives such as national savings or economic development. Over the past two decades, SWFs have grown in size and assets, with tremendous impact on the global capital markets. Although the largest SWFs by asset under management are found mainly in Asia and the Gulf countries, African countries such as Nigeria, Ghana, Angola and Libya have also established SWFs. This paper explores how African SWFs can impact the continent’s bourgeoning digital economy. The paper notes that given the long-term investment horizon and significant assets held by African SWFs, they are well-placed to catalyse innovation and the digital economy in Africa through deliberate allocation of assets to support digital infrastructure, development, and venture financing.

Keywords: Sovereign Wealth Funds, Digital Economy, Co-investment, Sovereign Venture Financing.

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UNILAG Law Review, (2021) Volume 4 Edition 2

About the Author

Geoffrey Adonu is an LL.M graduate of New York University School of Law and a Nigerian corporate law lawyer. He can be contacted via email: gca247@nyu.edu.