Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa

Diallo, Boubacar ; Tchana Tchana, Fulbert ; Zeufack, Albert G.

World Bank, Washington, DC

关键词: sovereing wealth funds;    investment;    investment portfolio;    economic model;    risk;   

DOI  :  10.1596/1813-9450-7903
RP-ID  :  WPS7903

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper explores the landscape,contributions, and determinants of sovereign wealthfunds' long-term investments in Sub-Saharan Africa. Thestudy finds that of all regions, Africa receives the lowestshare of investment from sovereign wealth funds, and thelandscape is dominated by Asian funds. The investmentstrategies of sovereign wealth funds established by Africancountries tend to be to invest less domestically and moreabroad, contrary to Asian funds. In addition, using anenriched simple mean-variance portfolio model with anexponential utility function, the analysis shows that theinvestment rate of return and political connections have apositive and significant effect on sovereign wealth fundinvestments, and risk exerts a negative but not significanteffect. The paper confirms these results empirically, usinga database that includes 26 sovereign wealth fundinvestments over 1985-2013. Hence, sovereign wealth fundsinvesting in Africa care more about high returns and thepolitical interests of their country of origin than the riskof their investment.