Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa
This paper explores the landscape, contributions, and determinants of sovereign wealth funds' long-term investments in Sub-Saharan Africa. The study finds that of all regions, Africa receives the lowest share of investment from sovereign wealt...
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| Format: | Working Paper |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/736301480964634718/Sovereign-wealth-funds-and-long-term-investments-in-Sub-Saharan-Africa http://hdl.handle.net/10986/25802 |
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okr-10986-258022021-06-08T14:42:46Z Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa Diallo, Boubacar Tchana Tchana, Fulbert Zeufack, Albert G. sovereing wealth funds investment investment portfolio economic model risk returns political interests This paper explores the landscape, contributions, and determinants of sovereign wealth funds' long-term investments in Sub-Saharan Africa. The study finds that of all regions, Africa receives the lowest share of investment from sovereign wealth funds, and the landscape is dominated by Asian funds. The investment strategies of sovereign wealth funds established by African countries tend to be to invest less domestically and more abroad, contrary to Asian funds. In addition, using an enriched simple mean-variance portfolio model with an exponential utility function, the analysis shows that the investment rate of return and political connections have a positive and significant effect on sovereign wealth fund investments, and risk exerts a negative but not significant effect. The paper confirms these results empirically, using a database that includes 26 sovereign wealth fund investments over 1985-2013. Hence, sovereign wealth funds investing in Africa care more about high returns and the political interests of their country of origin than the risk of their investment. 2017-01-04T20:43:03Z 2017-01-04T20:43:03Z 2016-12 Working Paper http://documents.worldbank.org/curated/en/736301480964634718/Sovereign-wealth-funds-and-long-term-investments-in-Sub-Saharan-Africa http://hdl.handle.net/10986/25802 English en_US Policy Research Working Paper;No. 7903 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
sovereing wealth funds investment investment portfolio economic model risk returns political interests |
| spellingShingle |
sovereing wealth funds investment investment portfolio economic model risk returns political interests Diallo, Boubacar Tchana Tchana, Fulbert Zeufack, Albert G. Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa |
| geographic_facet |
Africa Sub-Saharan Africa |
| relation |
Policy Research Working Paper;No. 7903 |
| description |
This paper explores the landscape,
contributions, and determinants of sovereign wealth
funds' long-term investments in Sub-Saharan Africa. The
study finds that of all regions, Africa receives the lowest
share of investment from sovereign wealth funds, and the
landscape is dominated by Asian funds. The investment
strategies of sovereign wealth funds established by African
countries tend to be to invest less domestically and more
abroad, contrary to Asian funds. In addition, using an
enriched simple mean-variance portfolio model with an
exponential utility function, the analysis shows that the
investment rate of return and political connections have a
positive and significant effect on sovereign wealth fund
investments, and risk exerts a negative but not significant
effect. The paper confirms these results empirically, using
a database that includes 26 sovereign wealth fund
investments over 1985-2013. Hence, sovereign wealth funds
investing in Africa care more about high returns and the
political interests of their country of origin than the risk
of their investment. |
| format |
Working Paper |
| author |
Diallo, Boubacar Tchana Tchana, Fulbert Zeufack, Albert G. |
| author_facet |
Diallo, Boubacar Tchana Tchana, Fulbert Zeufack, Albert G. |
| author_sort |
Diallo, Boubacar |
| title |
Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa |
| title_short |
Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa |
| title_full |
Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa |
| title_fullStr |
Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa |
| title_full_unstemmed |
Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa |
| title_sort |
sovereign wealth funds and long-term investments in sub-saharan africa |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/736301480964634718/Sovereign-wealth-funds-and-long-term-investments-in-Sub-Saharan-Africa http://hdl.handle.net/10986/25802 |
| _version_ |
1764460186123108352 |